Gold held its footing around the US$4,200 level during Tuesday's Asian deals, as traders remained cautious ahead of the United States Federal Reserve’s two-day policy meeting, which begins later in the session.
The metal has spent recent days confined to a narrowing range, reflecting the broader sense of uncertainty as investors brace for crucial guidance on the central bank’s rate outlook.
By 4 pm AEDT (5 am GMT), spot gold was trading 0.1% lower at $4,187.71 per ounce.
The precious metal attracted tentative buying for a third straight day, gaining modest support from renewed weakness in the U.S. dollar.
The pullback in the greenback comes as President Donald Trump’s latest tariff threats added a layer of geopolitical unease, encouraging some defensive interest in bullion.
However, traders remain reluctant to take on larger positions ahead of the Fed’s meeting. Markets widely expect a 25 bps rate cut, bringing the target range to 3.5%–3.75%, but the greater focus rests on the tone of the central bank’s accompanying message.
Expectations of a more hawkish signal have helped push U.S. Treasury yields higher in recent sessions, with the benchmark 10-year yield holding above the psychologically important 4% mark.
The rise in yields and the earlier uptick in the dollar have acted as headwinds for gold.
Beyond the Fed, investors are also looking to upcoming JOLTS job openings data for September and October, which could add further clarity on labour market conditions and the likely trajectory of interest rates heading into next year.
