Gold edged lower in Asian trading on Tuesday, weighed by a stronger U.S. dollar and lingering uncertainty over the Federal Reserve’s near-term policy path after Chair Jerome Powell’s hawkish remarks last week. Spot prices fell 0.4% to $3,986.10/oz by 01:58 ET (06:58 GMT), while U.S. gold futures declined 0.5% to $3,994.30. The metal continued to falter above the $4,000 threshold as dollar strength made bullion pricier for non-U.S. buyers.

Dollar dynamics remained the dominant headwind. The greenback climbed to a three-month high on Monday as markets pared expectations for another Fed cut this year. Powell said a December move was “not a foregone conclusion,” and a chorus of Fed officials offered mixed signals on growth and inflation, reinforcing doubts about when—if at all—easing resumes. For gold, the implication is straightforward: fewer cuts and stickier real yields erode the appeal of a non-income-bearing asset.

Even so, downside momentum looks contained by geopolitics. While recent U.S.–China overtures briefly soothed nerves, renewed friction over advanced chip exports has tempered risk appetite, preserving some haven interest and helping gold find buyers on dips toward the high-$3,900s.

Across metals, the dollar’s advance hit harder. Silver fell 1.5% to $47.315/oz, platinum dropped 1.3% to $1,557.85/oz, and LME copper slipped 1.3% to $10,705.20/ton (COMEX $4.99/lb, −1.3%).

Outlook: Near-term direction hinges on incoming Fed speak and U.S. data that could shift rate-cut odds. A sustained close back above $4,000 would signal fading downside pressure; absent a softer dollar or a clearer dovish turn, rallies may stall into resistance, keeping gold range-bound with a defensive bias.