XAU/USD gains 0.81% to $4,344 as easing inflation fears reduce bets on Fed tightening in 2026.
Gold prices climbed 0.81% to $4,344 on Tuesday, recovering from daily lows of $4,306. The rally followed a sharp decline in oil prices after a US-Iran truce eased geopolitical tensions, reducing inflationary pressures and weakening the USD.
Traders scaled back expectations for Federal Reserve rate hikes in 2026, with money markets pricing an 80% chance of unchanged rates. The Fed’s two-day meeting began Tuesday, with investors focused on the Summary of Economic Projections and new Chair Kevin Warsh’s policy stance.
Lower Treasury yields and a softer dollar supported bullion, while two major central banks adopted hawkish tones amid Middle East risks. The RBA held rates steady but signaled concerns over inflation persistence.