LONDON, Oct 8 (Reuters): Gold prices edged up on Tuesday after four consecutive sessions of fall as a weaker dollar and safe-haven demand coming from the geopolitical tensions in the Middle East provided support.
Spot gold rose 0.3 per cent to $2,650.22 per ounce by 1142 GMT.
Gold prices, up 28 per cent so far this year, were under pressure since Friday's strong US jobs report prompted markets to adjust estimates of the depth of US November rate cuts.
"While this development may create headwinds in the short term, the prospect of lower US rates is still a welcome development for zero-yielding gold," said FXTM senior research analyst Lukman Otunuga.
"In addition, escalating tensions in the Middle East could accelerate the flight to safety - keeping bulls in the game."
In the Middle East, Hezbollah's deputy leader said that the group backs efforts to reach a ceasefire in Lebanon, and for the first time omitted any mention of a Gaza truce deal as a pre-condition to halting the group's attacks on Israel.
A line chart titled "Spot gold price in USD per oz" that tracks the metric over time.
In China, where markets returned from the Golden Week holiday, benchmark PM gold price saw the worst post-Golden Week session since 2017 with a decline of 0.12 per cent, said Hugo Pascal, precious metals trader at InProved.
Over the last seven years, the Chinese gold benchmark saw a growth of 0.63 per cent on average after this annual holiday.
"While certain observers have claimed that Chinese were flocking to precious metals stores during the Golden Week, the data presents a contrasting narrative, highlighting ongoing weakness," Pascal added.
Physical demand for gold in top consumer China has been muted in recent months with China's central bank holding back on buying gold for its reserves for a fifth straight month in September.
Spot silver lost 1.1 per cent to $31.38 per ounce, platinum rose 0.1 per cent to $972.85 and palladium fell 0.9 per cent to $1,015.
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