Gold endured a bumpy ride as the week got under way, dropping sharply and then flipping to gains as traders assessed the fallout from a stocks selloff and Middle East tensions.

Spot bullion -- which rallied close to a record last week -- initially sank more than 1 percent before rebounding to trade above US$2 450 an ounce. Growing concern about a deepening US slowdown weighed on equity markets, with traders worried the Federal Reserve may be behind the curve on rate cuts.

In the Middle East, meanwhile, there's anxiety that a very tense situation could spiral into a wider, direct conflict between Israel and Iran. Israel is preparing for a possible attack from Iran and its militias in retaliation for assassinations of Hezbollah and Hamas officials.

Gold is one of this year's best-performing major commodities, with gains aided by central-bank buying, Asian consumers and, in recent months, expectations the Fed is getting close to cutting rates.

While the metal typically benefits from haven demand during times of financial and geopolitical stress, it can weaken if risk-asset selloffs are particularly sudden or pronounced.

Bullion for immediate delivery was 0,4 percent higher at US$2 451,82 an ounce at 12:07 p.m. in Singapore, as 10-year Treasury yields retreated for an eighth session, the longest run since 2019, and the Bloomberg Dollar Spot Index edged lower. Last week, the precious metal rose more than 2 percent, topping US$2 477, within US$10 of its record.

Among other metals, silver first dropped almost 2 percent, then bounced to trade higher near $29 an ounce, while palladium and platinum dropped. -- Bloomberg