Gold (XAU/USD) inched higher Tuesday, rebounding slightly from recent lows as easing global trade tensions tempered demand for the safe-haven metal ahead of a key US Federal Reserve policy decision.
Spot gold was trading at $3,324.45 an ounce by 10:45 GMT. The metal has retreated over the past four sessions, pressured by progress in US-EU trade talks and a stronger dollar, which have reduced immediate safe-haven demand.
Over the weekend, the US and EU reached a framework trade agreement, easing tensions between two of the world’s largest economies. This development has diminished near-term appetite for gold, though prices are expected to remain comfortably above $3,000 an ounce amid ongoing global uncertainty.
Analysts have lifted their median gold price forecasts for this year to $3,220 per troy ounce, up from $3,065 three months ago. Projections for 2026 have also increased, rising to $3,400 from $3,000. Central bank reserve diversification away from the dollar continues to underpin the metal’s long-term rally.
Investors are now focused on the Federal Reserve’s two-day policy meeting, with a decision expected on Wednesday. While interest rates are widely anticipated to remain steady, markets will closely scrutinise any signals regarding future monetary policy.
Caution ahead of the Fed meeting has kept bullion trading within a defined range, as traders hold back from making significant moves. Investors also await a series of US economic releases later this week, including second-quarter GDP, inflation data, and employment figures.