Gold prices steadied near record highs during Tuesday's Asian deals, with investors awaiting United States retail sales figures and the Federal Reserve’s policy decision later in the week.
By 3:30 pm AEST (5:30 am GMT), spot gold was up US$5.50, or 0.1%, at US$3,684.06 per ounce.
Despite the pause in momentum, gold remains underpinned by expectations of aggressive monetary easing from the Fed.
Analysts point to stagflation risks and the Senate’s confirmation of Stephen Miran as a Fed Governor, replacing Adrian Kuglar, as further support for the bullish trend. Miran will serve on the Board until January.
US President Donald Trump has intensified calls for a larger rate cut, urging Fed Chair Jerome Powell to enact a “bigger” reduction in borrowing costs.
Markets are widely expecting a 25-basis point cut, though speculation persists over a possible 50-basis point move, with traders pricing in as many as three cuts this year.
Geopolitical risks are also driving demand for the precious metal. Trump said late Monday that U.S.-China trade negotiations are continuing.
In the Middle East, Israeli Prime Minister Benjamin Netanyahu signalled no restraint in targeting Hamas leaders abroad, after last week’s strike in Qatar, further fuelling safe-haven interest.
