Gold prices held steady on Tuesday as attention shifted to upcoming U.S. jobs data that could give insights into the size of rate cuts the Federal Reserve is expected to deliver this month.

Spot gold was at $2,498.87 per ounce by 1111 GMT, having a hit more than one-week low in the last session on a firmer dollar. U.S. gold futures rose 0.1% to $2,530.70.

Quantitative Commodity Research analyst Peter Fertig said the gold market was torn between focusing on how deep the Fed's cuts will be in September and cuts in the following two meetings.

Traders see a 31% chance of a 50 basis point rate cut at the Fed's Sept. 17-18 policy meet and a 69% chance of a quarter point cut.

Investors will monitor Friday's U.S. payrolls report, while ISM surveys, JOLTS job openings and the ADP employment report can also provide clues on the Fed's rate cut path.

"If the (payrolls) report comes in as expected... gold could fall further," Commerzbank wrote in a note.

"On the other hand, if the U.S. jobs report is significantly weaker, speculation about a U.S. recession and faster rate cuts will resurface, further supporting gold."

Bullion, traditionally known for its stability as a favoured hedge against geopolitical and economic risks, thrives in a low-interest rate environment.

Goldman Sachs in a note said gold stands out as the commodity where the bank has the highest confidence in near-term upside.

"It remains our preferred hedge against geopolitical and financial risks, with added support from imminent Fed rate cuts and ongoing EM central bank buying," it said.

So far this year, gold has gained 21%, breaking successive records to hit a historic high of $2,531.60 per ounce on Aug. 20.

Spot silver dipped 0.7% to $28.30, platinum fell about 1.5% to $916.50 and palladium lost 1.7% to $962.10.

(Reporting by Rahul Paswan in Bengaluru; editing by David Evans and Barbara Lewis)