Gold traded in a narrow range on Tuesday on lingered worries over extended period of rate hike, but there were few immediate trading clues due to a holiday in the US market.

Over the previous two sessions, the yellow metal had recovered dramatically from a two-month low, finding some support at the $2,000 per ounce.

However, the rebound kept gold securely inside the $2,000–$2,050 trading range that had been in place for the whole of 2024.

Spot gold advanced by 0.1% to $2,019.17 per ounce, while gold futures traded flat at $2,030.20 per ounce.

While gold received some support in recent sessions due to the growing geopolitical unrest in the Middle East and between Russia and Ukraine, higher and longer-term U.S. interest rates have mainly halted the yellow metal from making larger gains.

A string of hotter-than-expected U.S. inflation readings for January caused traders to gradually price out the possibility of an early interest rate cut by the Fed, and many Fed officials cautioned against betting on such a move.