Gold prices (XAU/USD) maintained a positive bias on Tuesday, marking their second consecutive day of modest gains, although slightly retreating from a two-week high reached earlier in the Asian session. Despite signals of de-escalating US-China trade tensions, investor sentiment remains cautious, largely due to US President Donald Trump’s unpredictable trade policies, which continue to create uncertainty.
Additionally, ongoing geopolitical risks, including the Russia-Ukraine conflict and instability in the Middle East, are driving safe-haven demand for gold, further supporting its price.
The US Dollar (USD), meanwhile, remains under pressure as it struggles to attract significant buying interest, primarily due to the heightened economic uncertainty linked to Trump’s tariffs. This weakening of the dollar provides an additional boost to gold.
However, traders are exercising caution ahead of the critical Federal Open Market Committee (FOMC) policy meeting, set to begin on Tuesday. This caution is contributing to a restrained approach to any potential bullish movements in the XAU/USD pair, with market participants waiting for clearer signals before committing to more aggressive positions.
