Gold eases as firmer dollar outweighs support from rate-cut bets

Gold prices dipped slightly on Tuesday as the dollar made a modest recovery. However, losses were limited due to investor optimism about imminent U.S. rate cuts and concerns over the Middle East crisis. Spot gold fell 0.4% to $2,507.96 per ounce, while U.S. gold futures dropped 0.5% to $2,543.20. The strength of the dollar made gold less attractive to foreign currency holders. Debate over the size of the rate cut may cause investors to adopt a wait-and-see approach. A low interest rate environment typically increases the appeal of gold.