Gold prices gained ground on Tuesday, recovering slightly from near three-week lows as easing global trade tensions tempered demand for the safe-haven metal ahead of a pivotal U.S. Federal Reserve policy announcement.
By 04:50 ET (08:50 GMT), spot gold rose 0.4% to $3,327.10 per ounce, while gold futures increased by the same margin to $3,381.00 per ounce.
US-EU trade deal dims gold’s appeal
After four straight sessions of decline, gold prices have been pressured by recent progress in U.S. trade relations, which has reduced immediate demand for haven assets.
The weekend agreement on a trade framework between the U.S. and the European Union eased tensions between two of the world’s largest economies, dampening the short-term need for gold as a safe store of value.
The U.S. Dollar Index surged more than 1% on Monday and continues to trade positively, making dollar-denominated commodities like gold costlier for international buyers.
Still, despite recent softness, gold is expected to hold above $3,000 per ounce as ongoing uncertainty sustains safe-haven interest, according to a Reuters poll of analysts.
The survey of 40 experts produced a median forecast of $3,220 per troy ounce for 2025, up from $3,065 three months earlier. The 2026 projection increased to $3,400 from $3,000.
While trade uncertainties and fiscal risks have kept gold attractive, most analysts point to central banks as the key driver of the metal’s rally, due to their long-term strategy of diversifying reserves away from U.S. dollar dominance.
Fed meeting in focus
Investors are now turning their attention to the U.S. Federal Reserve’s two-day policy meeting, concluding Wednesday, where interest rates are widely expected to remain steady. Market participants will closely analyze any hints regarding future monetary policy.
This cautious stance ahead of the meeting has kept gold prices relatively range-bound, with traders hesitant to make significant moves.
Upcoming U.S. economic releases, including second-quarter GDP, PCE inflation data, and monthly employment figures, are also on investors’ radar this week.
Other metals
Platinum futures dipped 0.1% to $1,418.15 per ounce, while silver futures inched up 0.4% to $38.38 per ounce.
On the copper front, London Metal Exchange benchmark prices slipped 0.1% to $9,782.45 per ton, with U.S. copper futures falling 0.2% to $5.60 per pound.
Copper prices in the U.S. dropped nearly 3% on Monday after Chile’s finance minister announced plans to seek an exemption from upcoming 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,” ING analysts noted.
“Traders have been shipping record volumes of copper to the U.S. to front-run the tariffs. This has caused a record price gap between U.S. copper prices and the benchmark LME prices,” they added.
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