Gold (XAU/USD) is trading in a narrow range on Tuesday as investors await a closely watched US inflation reading later today.
Spot gold was trading at $3,349.09 by 10:00 GMT, remaining largely unchanged after Monday’s decline when easing geopolitical tensions reduced safe-haven demand.
The pullback follows signs of progress in US foreign policy. President Donald Trump is preparing to meet Russian President Vladimir Putin in Alaska on 15 August to try to end the war in Ukraine.
His deadline for a peace deal has passed without tougher sanctions, and his suggestion of a “territory swap” in Donbas has been rejected by Kyiv and met with caution from European leaders.
Overnight, Trump also confirmed higher tariffs on Chinese imports will remain suspended until 10 November, just hours before the truce is set to expire.
The US and China raised tariffs sharply earlier this year before a May agreement lowered rates to 30% for US duties and 10% for China’s. Those levels will now hold unless a new deal is reached sooner.
Attention now turns to the US Consumer Price Index, due at 13:30 UK time, which could influence expectations for a September Federal Reserve rate cut.
A stronger reading may support the dollar and weigh on gold, though analysts suggest labour market data will likely guide policy more than tariff-influenced inflation moves.