Gold Recovers from Recent Lows as Long-Term Outlook Remains Positive

Gold prices recovered slightly on Tuesday after hitting near three-week lows, as reduced global trade tensions lessened demand for the precious metal as a safe haven. Spot gold rose 0.4% to $3,327.10 per ounce, while gold futures also gained 0.4%.

The recent decline came after the U.S. and EU reached a framework trade agreement over the weekend, which eased tensions between the major economies and reduced appetite for safe-haven assets. Additionally, the strengthening U.S. dollar made gold more expensive for international buyers, as the Dollar Index jumped over 1% on Monday.

Despite the recent weakness, analysts remain optimistic about gold’s longer-term prospects. A Reuters survey of 40 experts predicted gold would average $3,220 per ounce this year, with expectations rising to $3,400 for 2026. The analysts believe central bank purchases for reserve diversification will continue supporting gold prices.

Market attention is now focused on the Federal Reserve’s upcoming policy meeting, with a decision expected Wednesday. The Fed is anticipated to maintain current interest rates, though investors will closely watch for hints about future monetary policy directions.

Other metals showed mixed performance, with silver gaining 0.4% while copper declined due to concerns about potential U.S. tariffs on Chilean copper imports beginning August 1st.