Gold was steady amid thin trading due to the U.S. Thanksgiving holiday, with investors weighing the prospect of a Federal Reserve interest rate cut and rising tensions in Ukraine.

Bullion was trading near $2,640 an ounce on Friday and down about 3% for the week after a ceasefire between Israel and Hezbollah reduced some demand for the safe-haven asset. Swap markets are pricing in a more than 60% chance the Fed will ease borrowing costs again next month

The market is also monitoring fresh threats from Russia, after President Vladimir Putin warned on Thursday that his forces could strike "decision-making centers" in Kyiv with new ballistic missiles, further escalating the war in Ukraine.

The precious metal is still up nearly 30% this year, though the rally has reversed this month after Donald Trump's election victory boosted the dollar, making bullion more expensive for many buyers. The U.S. currency gauge is on track for its first weekly decline in eight weeks, however, potentially positive for bullion if losses persist.

Spot gold was little changed at $2,637.32 an ounce at 8:17 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.1 percent, and is down 1 percent this week. Silver was steady, while platinum and palladium were slightly lower. Source: Bloomberg