LONDON: Gold prices were little changed on Tuesday as the dollar steadied near 6-1/2 month lows and traders locked in profits after two weeks of gains, shrugging off heightened political risk following a deadly suicide attack in Britain.
The blast, which killed at least 22 people, weighed on sterling versus the dollar, but the US currency was flat against a currency basket after recent sharp falls, leaving little to prompt investors to bet bullion higher.
"Gold is taking a breather once again; it's struggling to make it out of this $1,245-$1,265 range," said Ole Hansen, head of commodities strategy at Saxo Bank.
"Unless we get other developing (political risk) stories, the market is not prepared to break this range until further guidance from the Federal Open Market Committee."
Spot gold edged up 0.2 percent to $1,262.10 an ounce by 1211 GMT, having gained about 3.6 percent since May 9, while US gold futures were up 0.1 percent at $1,262.
The safe-haven metal, also seen as an alternative currency to the US dollar, has been supported by weakening US economic data and troubles facing US President Donald Trump, all of which have weighed on the greenback.
The dollar is down by about 7 percent this year, reversing all the gains made after Trump's election win in November.
Still, Federal Reserve fund futures were up, showing a 75 percent chance of a June increase to interest rates and deterring investors from pushing gold higher until further word from the Fed on the the prospects for rates this year.
The Fed will publish minutes of its May meeting on Wednesday.
In the wider markets, US stock index futures opened higher ahead of Trump's first full budget plan, while European shares advanced on encouraging economic data that helped to lift the euro to a six-month high against the dollar.
Silver was up 0.6 percent at $17.23 an ounce, having touched a three-week peak of $17.30.
Platinum rose by 1 percent to $950.90 after hitting $957.50, its highest in nearly a month.
Palladium rose 0.2 percent to $771.95, having dropped to a more than two-month low in intraday trading on Monday before ending the day up 1.5 percent, its biggest one-day gain since April 20.
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