Gold (XAU/USD) edges lower during the American session on Tuesday, pressured by a firmer US Dollar and improved risk sentiment. The metal is trading near $3,320, close to the 12-day low marked during early Asian trade. Earlier in the day, Gold had briefly rebounded from overnight weakness following Monday's White House summit between US President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and key European leaders. While the talks signaled diplomatic unity, the lack of a ceasefire continues to keep geopolitical uncertainty elevated, providing some underlying support to safe-haven flows.

A stronger US Dollar is capping Gold's recovery attempts, while slightly lower Treasury yields after three days of gains are offering only limited support. Looking ahead, focus shifts to Wednesday's release of the FOMC meeting minutes and the upcoming Jackson Hole Symposium, both of which could shape expectations for the Federal Reserve's next policy move. Markets are still pricing in a rate cut in September, and any dovish rhetoric could help revive demand for non-yielding assets like Gold.

While markets welcomed signs of diplomatic coordination, the Trump-Zelenskyy summit offered little in the way of immediate breakthroughs, keeping investors on edge. Leaders pledged continued military and economic support for Ukraine, with talks centering around a proposed "coalition of the willing" to oversee future defense arrangements. President Trump revealed he had already spoken with Russian President Vladimir Putin and signaled early preparations for a potential trilateral summit. "It would be two presidents, plus myself," he noted, referring to a possible meeting with both Zelenskyy and Putin. Trump also emphasized that the United States would work closely with European partners to establish long-term security guarantees for Ukraine.

Source: Fxstreet