Gold remained stuck around $2,625 for a second day despite incoming US President-elect Donald Trump threatening to impose tariffs on three of its major trading partners, as well as geopolitical uncertainty as Hezbollah and Israel agreed to a ceasefire.
At 9.25am, gold was at $2,630.23, down 0.11% since it opened early Wednesday in Asian trading.
Meanwhile, investors were looking at the newly released minutes of the Federal Open Market Committee (FOMC) meeting, with expectations that the Federal Reserve (Fed) may consider temporarily halting rate cuts to contain high inflation.
However, Trump's policy of imposing tariffs on Canada, Mexico and China has increased the USD's strength and concerns of a global trade war.
Monday's gold price decline was compounded by the agreement on a ceasefire in the Middle East and the appointment of Scott Bessent as US Treasury Secretary in the incoming Donald Trump administration.
This will increase risk appetite and reduce demand for safe-haven assets like gold.
Heading into the week, the US economic docket will feature third-quarter Gross Domestic Product, Durable Goods Orders, Initial Jobless Claims and the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index.
