Gold prices steadied on Tuesday, having touched their lowest in over a week earlier in the session as safe-haven demand for the metal eased on optimism about a potential ceasefire between Israel and Hezbollah militants in Lebanon.

Spot gold was little changed at $2,628.99 per ounce, as of 1017 GMT, after earlier hitting its lowest since Nov. 18. US gold futures were up 0.4 percent to $2,629.50.

Gold fell over 3 percent  on Monday, its deepest one-day decline in more than five months, on news that Israel looked set to approve a US plan for a ceasefire with Iran-aligned Hezbollah, with further pressure from US President-elect Donald Trump's nomination of Scott Bessent as US Treasury secretary.

"Gold prices today are being influenced by the sustained risk appetite that gained momentum yesterday," said Ricardo Evangelista, senior analyst at ActivTrades.

"Positive geopolitical developments, including reports of a potential ceasefire between Israel and Lebanese militia, further dampened demand for the precious metal."