Gold prices held modest intraday gains during Asian trade on Tuesday, supported by a softer United States dollar but with investors showing caution ahead of closely watched U.S. inflation data.
By 3:40 pm AEST (5:40 am GMT), spot gold was up $10.95, or 0.3%, at $3,353.63 per ounce, recovering some ground after sliding 1.6% to a one-week low on Monday after Trump said the precious metal would not be subject to U.S. tariffs, announcing the move on social media without any formal policy update.
Meanwhile, market sentiment remains anchored by expectations that the U.S. Federal Reserve will resume interest rate cuts in September.
This has limited the dollar’s recent two-day advance, providing some support to the non-yielding precious metal.
However, traders were reluctant to place aggressive bullish bets, preferring to wait for the latest U.S. consumer price index data.
The figures are expected to shape market views on the Fed’s policy trajectory, influencing dollar demand and providing fresh impetus for gold.
Geopolitical and trade developments have also tempered safe-haven demand. Optimism over the extension of the U.S.-China trade truce and a planned U.S.-Russia summit aimed at ending the war in Ukraine have eased market anxiety, limiting upside for bullion.
