Gold traded slightly higher in Asian trade on Tuesday, holding in a narrow range as investors stayed cautious ahead of a series of pivotal United States Federal Reserve events later this week.
By 3:40 pm AEST (5:40 am GMT), spot gold was up $5.62, or 0.2%, at $3,338.48 per ounce. The market remains wary of taking fresh positions with the release of the Fed’s July meeting minutes due midweek and the closely watched Jackson Hole Economic Symposium scheduled from 21 to 23 August.
Adding to the cautious tone, geopolitical headlines offered a mixed backdrop. U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy concluded talks late Monday, pledging to work toward ending hostilities with Russia.
Zelenskyy said security guarantees for Ukraine could be finalised within 10 days in discussions with Trump and European leaders. The tentative optimism tempered safe-haven demand for gold but did not trigger heavy selling.
On the macro front, expectations remain firm that the Fed will cut interest rates twice this year, beginning in September.
A lower-rate environment typically supports non-yielding assets such as gold.
Attention is now fixed on Fed Chair Jerome Powell, who is due to speak on Friday (Saturday AEST) at Jackson Hole. His remarks on the economy and policy outlook will be scrutinised for confirmation of the Fed’s dovish stance in light of slowing momentum in growth and labour markets.
