Gold prices were steady on Tuesday as traders remained cautious ahead of interest rate decisions by major central banks, including the Federal Reserve.

Bullion held steady near $2,650 an ounce, after posting modest gains in the previous session as investors digested mixed U.S. data. Activity at U.S. service providers expanded at the fastest pace since October 2021, while a gauge of New York state factory activity fell the most since May.

The Fed makes its final interest rate decision of the year on Wednesday, followed by policy announcements in Japan and the U.K. this week. Swap markets are almost fully priced for a quarter-point Fed rate cut, and traders will focus on policymakers' language for clues about the outlook for 2025. Lower interest rates are usually positive for gold, which pays no interest.

The precious metal has risen about 29% this year, putting it on track for its biggest annual gain since 2010. Its strength has been supported by easing in the U.S., safe-haven demand and continued buying by global central banks.

Spot gold was little changed at $2,651.93 an ounce at 7:57 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and palladium fell, while platinum was little changed.

Source: Bloomberg