Gold prices remained subdued during Asian deals on Tuesday, hovering near multi-week lows as investors turned cautious ahead of the United States Federal Reserve’s two-day monetary policy meeting.
By 4:15 pm AEDT (5:15 am GMT), spot gold was down 0.2% at US$3,974.17 per ounce, recovering slightly after a steep selloff earlier in the week.
Meanwhile, the U.S. dollar index (DXY) slipped to weekly lows, weighed down by dovish Federal Reserve expectations and optimism surrounding a potential U.S.-China trade deal.
The softer greenback provided limited support for gold prices, helping the metal stabilise after two consecutive sessions of sharp declines.
Gold had tumbled more than 3% on Monday as investors favoured risk assets over traditional havens, buoyed by optimism that U.S. President Donald Trump and Chinese President Xi Jinping will finalise a trade deal during their upcoming meeting in South Korea on Thursday.
All attention now turns to the Federal Reserve’s policy decision and the accompanying remarks from Chair Jerome Powell, as traders seek clarity on the future path of interest rates.
Markets are fully pricing in at least two rate cuts this year, with a 25 basis point reduction widely expected on Wednesday.
Beyond the headline decision, investors will scrutinise the Fed’s policy statement and Powell’s tone for signals on whether additional easing is likely before year-end.
