Gold prices edged up on Tuesday, rebounding from near three-week lows as easing global trade tensions softened demand for the precious metal ahead of an important U.S. Federal Reserve policy meeting.
At 04:50 ET (08:50 GMT), spot gold rose 0.4% to $3,327.10 an ounce, with gold futures matching the gain, trading at $3,381.00 per ounce.
Trade deal between US and EU cools gold’s momentum
Gold has slipped over the past four sessions amid progress on U.S.-EU trade talks, which have lessened the urgency for safe-haven assets.
The recent trade agreement between the United States and European Union eased frictions between the two economic powerhouses, reducing near-term investor appetite for gold.
The U.S. Dollar Index climbed more than 1% on Monday and remains strong, pushing up the dollar price of gold and making it more expensive for international buyers.
Nonetheless, analysts polled by Reuters expect gold to remain above $3,000 per ounce due to ongoing market uncertainties.
The survey of 40 market participants showed a median gold price forecast of $3,220 per troy ounce for 2025, an increase from $3,065 in a similar poll three months ago. The 2026 estimate also rose to $3,400 from $3,000.
While trade and fiscal concerns have bolstered gold’s appeal, most experts attribute the rally primarily to central banks diversifying their reserves away from the U.S. dollar for the long term.
Eyes on the Federal Reserve
Market watchers are focused on the U.S. Federal Reserve’s two-day meeting, concluding Wednesday, where rates are expected to hold steady. Investors are eager for clues on the Fed’s future policy direction.
This caution ahead of the meeting has kept gold trading within a narrow range, with traders reluctant to take large positions.
In addition, several key U.S. economic reports, including second-quarter GDP, inflation data, and employment figures, are due later this week.
Other metals update
Platinum futures dipped 0.1% to $1,418.15 per ounce, while silver futures edged up 0.4% to $38.38 an ounce.
Copper prices fell slightly, with London Metal Exchange benchmark futures down 0.1% to $9,782.45 a ton and U.S. futures dropping 0.2% to $5.60 per pound.
U.S. copper prices saw a nearly 3% decline Monday following comments from Chile’s finance minister that the country will seek exemption from forthcoming U.S. tariffs on the metal.
“The copper market is awaiting more details on planned copper tariffs, which are set to begin on 1 August,” said analysts at ING.
“They noted that traders have been rushing to ship record volumes of copper to the U.S. ahead of the tariffs, creating a historic price gap between U.S. and LME copper prices,” they added.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.