PRECIOUS-Gold listless as safe-haven demand faces mixed geopolitical signals

*

Gold hits lowest since Nov. 18 after Monday's over 3% decline

*

Trump pledges fresh tariffs on Canada, Mexico, and China

*

Federal Reserve's Nov meeting minutes due later in the day

(Updates with U.S. morning hours)

By Sherin Elizabeth Varghese

Nov 26 (Reuters) - Gold prices were caught in a tug-of-war on Tuesday, dipping to a week's low as safe-haven demand softened on optimism over a potential Israel-Hezbollah ceasefire, while concern over Ukraine and U.S. President-elect Donald Trump's tariff plans limited declines.

Spot gold was steady at $2,627.50 per ounce, as of 10:35 a.m. ET (1535 GMT), erasing some of the earlier losses when prices hit its lowest since Nov. 18. U.S. gold futures gained 0.4% to $2,628.00.

This follows Monday's dramatic $100 plunge, when gold retreated from a three-week high. The sell-off was fueled by Israel and Hezbollah ceasefire optimism and further pressured by Trump's nomination of Scott Bessent as Treasury Secretary, which tempered demand for gold as a safe haven.

"It's probably some realization that a ceasefire between Israel and Hezbollah only modestly mitigates overall geopolitical risks, certainly there's some optimism there," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Concern over the wider fallout from Russia's invasion of Ukraine continues to remain very high, however, Grant said adding that gold will likely experience choppy consolidation in the near term, ranging between $2,575-$2,750.

Gold is traditionally seen as a safe investment during economic and geopolitical uncertainty such as trade wars.

Trump's pledge of big tariffs on Canada, Mexico, and China loom large. While they could spark trade wars and bolster gold's appeal, the resulting inflation risks might tamper Federal Reserve rate cuts, potentially weighing on prices, analysts said.

Markets are now focused on Fed November meeting minutes later in the day. With a 56% chance of a December rate cut being priced in, investors remain cautious.

"Dovish signals from the Fed may support gold prices, while indications of a potential pause in rate cuts next month could create additional headwinds for bullion," Ricardo Evangelista, senior analyst at ActivTrades said in a note.

Spot silver rose 0.5% to $30.44 per ounce and palladium gained 1.5% to $987.37.

Platinum lost 0.9% to $929.98 with Commerzbank analysts forecasting platinum to hit $1,100 in 2025.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; editing by Philippa Fletcher)