Gold (XAU/USD) continues its upward move during Tuesday’s European session, reaching a new daily high. The metal has recovered a large portion of the previous day’s sharp decline of more than 2%, when prices slipped toward the $4,842–$4,843 area — the lowest level in nearly two weeks. Still, traders remain cautious before the release of the FOMC Minutes, which could offer clearer guidance on the US Federal Reserve’s interest-rate outlook. Expectations around rate cuts are likely to influence the US Dollar (USD) and provide the next direction for the non-yielding metal.
Chicago Fed President Austan Goolsbee stated that several rate cuts may still be possible this year if inflation continues moving toward the Fed’s 2% target. His comments followed softer US inflation data released last week and strengthened market expectations that the central bank could begin easing policy in June and possibly implement two additional cuts in 2026. These expectations are supporting demand for Gold. However, the USD remains slightly firm, and reduced geopolitical tensions may limit stronger safe-haven buying.
Talks between the United States and Iran resumed in Geneva, where both sides agreed on basic “guiding principles” during the second round of nuclear negotiations, easing fears of military escalation. At the same time, trilateral discussions involving the US, Russia, and Ukraine were rescheduled for Wednesday. The improvement in geopolitical sentiment has supported global equity markets, suggesting traders may wait for stronger confirmation before betting on further gains in XAU/USD.
Investors will now monitor upcoming US economic releases, including housing data, comments from Federal Reserve officials, fourth-quarter 2025 GDP figures, and the core Personal Consumption Expenditures (PCE) Price Index — the Fed’s preferred inflation indicator.
