Gold traded in a narrow range on Tuesday as traders were anticipating the central bank stance regarding interest rates and comments from Jerome Powell.

Spot gold added $2,034.67 per ounce, meanwhile gold futures advanced by 0.4% to $2,033.50.

Traders are on edge eyeing Fed’s policy meeting and the job figures scheduled to release this week, and that is stabilizing gold prices; nevertheless, given the geopolitical unrest in the Middle East, prices are projected to inch up on Tuesday.

The focus will mostly be on Powell's remarks on Wednesday, but markets generally anticipate that the Fed will maintain current rates during its two-day policy meeting, which begins later today.

In the US, traders are pricing five quarter-point rate trims for 2024.

According to a Reuters poll released on Monday, record gold prices in 2024 could be driven by economic instability and U.S. interest rate trims.

By cutting interest rate, the opportunity cost of owning bullion is dropped.