Gold has been trading flat above $2,600 since the opening of the week as markets were quiet ahead of the festive season and investors also await the US Richmond Fed Manufacturing Index for December which will be released on Tuesday night.
At 9.15am sharp, gold prices were at $2,615.36, up 0.09% since it opened early Tuesday in Asian trading.
Meanwhile, a stronger US dollar (USD) could weigh on the yellow metal as its price rose sharply and provide investors with a profit.
The US Dollar Index (DXY) rose higher to 108.00 points amid cautious market sentiment.
For now, the market will continue to digest the Federal Open Market Committee (FOMC) decision last week and expectations of a policy easing trend in 2025.
According to the World Gold Council (WGC), central bank demand has increased significantly, highlighting the metal's continued position as a safe-haven asset. Central banks have been net buyers of gold for over 15 years.
