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Investing.com-- Gold prices edged higher Tuesday, bouncing from near three-week lows as easing global trade tensions limited demand for the safe-haven metal ahead of a key U.S. Federal Reserve policy decision.
At 04:50 ET (08:50 GMT), spot gold edged up 0.4% to $3,327.10 an ounce, while gold futures also gained 0.4% to $3,381.00/oz.
U.S.-EU deal dulls gold’s shine
Bullion has fallen for the past four consecutive sessions as recent U.S. trade progress eroded demand for haven assets.
The United States and the European Union reached a framework trade agreement over the weekend, with the easing trade tensions between the two major economies diminished near-term appetite for safe-haven assets like gold.
The US Dollar Index jumped more than 1% on Monday, and remains in positive territory this session, making commodities like gold, which is denominated in the U.S. currency, more expensive for overseas buyers.
However, despite the recent weakness, the gold price is likely to stay above $3,000/oz as the flight to safety endures, according to a Reuters poll of analysts.
The poll of 40 analysts and traders returned a median forecast of $3,220 per troy ounce of gold for this year, up from $3,065 predicted in a poll three months ago. The 2026 estimate rose to $3,400 from $3,000.
While uncertainty over looming trade deadlines and fiscal concerns have bolstered safe-haven gold’s appeal, most analysts believe that central banks remain the bedrock of gold’s rally, driven by the long-term diversification of reserves away from dollar dominance.
Fed meeting looms
Investors are now looking ahead to the U.S. Federal Reserve’s two-day policy meeting, 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 and the monthly jobs report.
Chile seeks copper tariff exemption
Elsewhere, platinum futures fell 0.1% to $1,418.15/oz, while silver futures edged up 0.4% to $38.378 per ounce.
Benchmark copper futures on the London Metal Exchange fell 0.1% to $9,782.45 a ton, while U.S. copper futures were down 0.2% at $5.6048 a pound.
U.S. copper prices dropped nearly 3% on Monday after Chile’s finance minister said the country will push for an exemption for a planned U.S. 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 U.S. to front-run the tariffs. This has caused a record price gap between U.S. copper prices and the benchmark LME prices,” they added.
Ayushman Ojha contributed to this article