Gold prices steadied on Tuesday after a four-session decline, as investors weighed geopolitical risks and prepared for key United States economic events, including second-quarter gross domestic product (GDP) figures and the Federal Reserve’s upcoming policy decision.
By 3:30 pm AEST (5:30 am GMT), spot gold rose US$3.07, or 0.1%, to US$3,317.45 per ounce, from recent three-week lows.
The U.S. dollar paused its recent advance as markets turned cautious ahead of day two of high-level trade talks between the United States and China in Stockholm.
The previous day’s discussions concluded without resolution, though talks are set to continue on Tuesday.
Meanwhile, Trump threatened to impose additional sanctions, including curbs on oil exports, if progress was not made within 10 to 12 days toward ending the war in Ukraine.
Still, gains in gold remain fragile. A stronger U.S. economic outlook or further positive developments in trade relations could bolster the dollar and cap bullion’s rebound.
On Monday, the U.S. dollar strengthened 1% against major currencies, after markets perceived that the newly concluded US-EU trade deal was skewed in favour of Washington.
The deal drew criticism from European heavyweights France and Germany, who argued that Brussels had conceded too much to Washington in an unbalanced agreement championed by President Trump.
