Gold prices were steady near three-week lows in Asian trading on Tuesday, as a stronger dollar and easing global trade tensions limited demand for the safe-haven metal, while investors awaited a key U.S. Federal Reserve policy decision due this week.
Spot Gold edged up 0.2% to $3,319.25 an ounce, while Gold Futures also gained 0.2% to $3,374.70/oz by 01:12 ET (05:12 GMT).
Bullion has fallen for the past four consecutive sessions as recent U.S. trade progress eroded demand for haven assets.
Stronger dollar, US-EU deal dulls gold’s shine The dollar firmed after the United States and the European Union reached a framework trade agreement on Sunday, reducing the threat of higher tariffs.
The US Dollar Index remained in positive territory after jumping more than 1% on Monday.
A stronger dollar makes gold more expensive for overseas buyers and tends to weigh on demand for the metal.
Analysts said the easing trade tensions between the two major economies diminished near-term appetite for safe-haven assets like gold.
Meanwhile, investors are looking ahead to the U.S. Federal Reserve’s policy meeting, which begins Tuesday, with a decision due on Wednesday. The central bank is widely expected to keep interest rates unchanged, although any signals on future monetary policy will be closely watched.
Caution ahead of the meeting kept bullion range-bound, with traders unwilling to take large positions.
Market participants also await a flurry of U.S. economic data due later this week, including second-quarter GDP, PCE inflation figures, monthly jobs report, among others.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Metal markets fall; Chile seeks copper tariff exemption Platinum Futures fell 0.5% to $1,418.05/oz, while Silver Futures edged up 0.2% to $38.313 per ounce.
Meanwhile, benchmark Copper Futures on the London Metal Exchange fell 0.3% to $9,778.45 a ton, while U.S. Copper Futures were down 0.4% at $5.60 a pound.
US copper prices dropped nearly 3% on Monday after Chile’s finance minister said the country will push for an exemption for a planned US tariff on the metal.
“The copper market is awaiting more details on planned copper tariffs, which are set to begin on 1 August,” ING analysts said.
“Traders have been shipping record volumes of copper to the US to front-run the tariffs. This has caused a record price gap between US copper prices and the benchmark LME prices,” they added.
