Gold traded sideways on Tuesday, as a lack of concrete details about an interim US-China trade deal kept investors from making firm bets, while palladium prices were set to break above the key $2,000 per ounce level for the first time.
Palladium was 0.5% higher at $1,987.59 an ounce by 0749 GMT, after hitting an all-time peak of $1,998.43. Spot gold was little changed at $1,476.43 per ounce, with US gold futures flat at $1,480.80.
"The trade situation is improving... but the weaker dollar is counter balancing that. So, we're seeing tight ranges for gold prices with these two factors running in opposite directions," said Michael McCarthy, chief market strategist at CMC Markets.
Investors are keen to know more about the preliminary trade deal struck between United States and China last week.
"There is a real risk that when it comes to the actual (deal) document, we could see some market disappointment and that of course would be supportive for gold," McCarthy added.
Gold, considered a safe investment in times of political and economic uncertainty, has gained about 15% this year, mainly driven by the 17-month-long tariff war and its impact on the global economy.
Capping bullion's advance, Asian shares rose to their highest in more than a year on trade deal optimism.
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