Gold prices steadied on Tuesday (September 24, 2024() after hitting a record high on expectations for a further easing of U.S. monetary policy and as tensions in the Middle East escalate.

Spot gold was little changed at $2,627.85 per ounce as of 0822 GMT, having hit a record high of $2,639.95 earlier in the session.

U.S. gold futures were steady at $2,652.40.

"We're starting to see gold a little bit overbought in the short term. And maybe we're seeing a bit of sort of trimming of long positioning after such a big rally," said Kyle Rodda, financial market analyst at Capital.com.

The metal's 14-day relative strength index (RSI) was around 72. An RSI above 70 indicates a commodity is overbought.

Bullion has scaled multiple record highs this year and has risen more than 27% so far in 2024, with gains attributed to central bank easing and geopolitical issues.

Fed policymakers on Monday said their large half-percentage-point rate cut last week was meant to try to sustain what they see as an emerging and healthy balance in the economy.

Chicago Fed Bank President Austan Goolsbee said there are "lots of cuts" to come over the next 12 months, while Minneapolis Fed President Neel Kashkari noted that the actual path would depend on incoming data.

Fed futures traders have priced in 75 basis points in rate cuts by the end of 2024, according to the CME FedWatch Tool.

Zero-yield bullion tends to be a preferred investment in a low interest rate environment and during geopolitical turmoil.

"A new war front opened in the Middle East between Israel and Hezbollah has also driven some flows for safe-haven gold in a bid to hedge against the geopolitical risks of any wider regional war," said IG market strategist Yeap Jun Rong.

Among other metals, spot silver rose 0.61% to $30.86 per ounce, platinum was up 1% at $965.20 and palladium climbed nearly 2% to $1,061.86.