International gold prices edged higher on Tuesday as a softer US dollar supported demand for the precious metal. Spot gold rose approximately 0.1% to US$4,145.22 per ounce, while US gold futures for December delivery increased to around US$4,164.70. Silver also gained approximately 0.7% during early trading.
Market participants are assessing expectations for the US Federal Reserve’s next policy decision, with many traders expecting interest rates to remain unchanged at the upcoming meeting. Lower interest rates generally support gold because the metal does not pay interest, while higher rates can make interest-bearing assets more attractive.
Investors are also watching geopolitical tensions and oil-price movements, which can influence inflation expectations and demand for safe-haven assets. Indian gold and silver prices may differ from international rates because of currency movements, import costs, taxes and domestic demand.
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