FX.co ★ Gold Holds Steady On Dollar Weakness

Gold prices held steady on Tuesday and the dollar was slightly weak, with Middle East tensions and upcoming Fed and BOE meetings in focus.

Spot gold edged up 0.1 percent to $1,997.46 per ounce, while U.S. gold futures were little changed at $2,005.95.

The dollar dipped as China's manufacturing data disappointed, and the Bank of Japan announced a tweak to its yield curve control policy.

Traders watched the latest developments in the Middle East after Israeli Prime Minister Benjamin Netanyahu rejecting calls for a ceasefire in the war against Hamas.

"Calls for a ceasefire are calls for Israel to surrender to Hamas, to surrender to terrorism... this will not happen," he said, vowing Israel would "fight until this battle is won".

Trading later in the day may be impacted by reaction to U.S. reports on home prices, consumer confidence and Chicago-area business activity.

The Federal Reserve's highly anticipated monetary policy announcement is due on Wednesday and analysts expect the U.S. central bank to leave interest rates unchanged.

Following the Fed announcement, the monthly employment report is likely to move into the spotlight later in the week.