Bullion was steady after jumping 1.1% on Friday as Israel stepped up ground operations. Tel Aviv sent troops and tanks into the northern Gaza Strip in what it called the second and longer phase of its war against Hamas and is taking a day-by-day approach. That eased fears that a massive invasion would lead to a regional escalation.

Gold has stood out as one of the biggest winners since Hamas attacked Israel on Oct 7, rising more than 9% as demand for haven assets increased. It’s likely to continue benefiting should tensions increase, alongside the Swiss franc and short-dated US government bonds.

The conflict has taken over from the US interest-rate path and Treasury yields as the main price drivers for bullion. Still, rate decisions by major central banks — including the Federal Reserve — will be watched closely this week for the impact on borrowing costs.

Spot gold declined 0.1% to $2,003.57 an ounce as of 8:20am in Singapore. The Bloomberg Dollar Spot Index rose 0.1%. Silver and platinum edged lower, while palladium was steady.