Gold edged higher in early Asian trade on Tuesday, climbing 0.2% as the dollar rallied and the Federal Reserve’s recent hawkish FOMC minutes weighed on the metal. IG market analyst Tony Sycamore said the precious metal is fighting to hold ground after last week’s policy signal, amid concerns over global growth and geopolitical tension.

Traders now price roughly a 40% chance the Fed will raise rates as early as next month, tightening the environment for a non‑yielding asset. The pricing shift follows minutes that signaled Fed willingness. Sycamore warned that a central bank focused on restoring inflation‑fighting credibility makes gold “a tough environment.” Spot gold sits at $3,998.71 an ounce, up 0.2%.

Investors seeking safe‑haven exposure will find Gold’s upside limited while the Fed signals tighter policy. A stronger dollar and higher rate expectations typically depress bullion prices, prompting funds to reallocate toward yield‑bearing assets. Gold miners' earnings forecasts have already been trimmed, adding pressure on the spot price, underscoring a fragile rally that could reverse if rate‑hike odds climb further.