Gold prices traded in a mixed range on Tuesday, preserving recent gains as traders awaited further developments in the Israel-Hamas conflict, while also keeping an eye on a series of major U.S. economic measures due this week.

Gold demand remained strong in the short term, with spot prices climbing as the Israel-Hamas crisis fueled safe-haven demand. However, a dip in gold futures indicated that gold bulls remained skeptical of higher-for-longer interest rates.

Nonetheless, a decrease in the dollar and rates from recent highs provided some assistance to bullion prices. 

Spot gold increased 0.1% to $1,975.71 per ounce, while December gold futures dipped 0.1% to $1,986.55 per ounce by 00:14 ET (04:14 GMT). Both instruments stayed close to a three-month high. 

The yellow gold has surged in value over the last two weeks as the Israel-Hamas conflict has pushed investors into safe havens. Markets are now on the lookout for any additional escalation in the war, despite recent diplomatic efforts from many big countries appearing to have averted any serious escalation.