Gold prices rose to a one-week high as investor interest picked up

Gold prices rose on Tuesday from a one-week low recorded in the previous session as fears of a wider conflict in the Middle East eased. This increased investors' appetite for risk and reduced demand for gold as a safe haven.

Gold rose 0.3 percent to $2,333.29 an ounce in spot trades by 01:16 GMT, and US gold futures were unchanged at $2,346.70 an ounce.

Tehran has downplayed Israel's retaliatory drone strike on Iran, which is aimed at avoiding regional escalation.

Policymakers, including Federal Reserve Chairman Jerome Powell, last week declined to give any guidance on when interest rates might be cut, saying instead that monetary policy should be restrained over the long term.

High interest rates reduce the attractiveness of holding non-yielding gold.

Markets this week await the release of data on personal consumption expenditures for March, the U.S. Federal Reserve's preferred measure of inflation, which will get more clues about the path of monetary policy.

In other precious metals, silver was up 0.4 percent at $27.31 an ounce in spot transactions, platinum was up 0.2 percent at $919.05 and palladium was down 0.1 percent at $1,007.58.

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