Gold prices steadied in holiday-thinned trade on Tuesday as investors looked ahead to the U.S. Federal Reserve’s interest rate strategy and President-elect Donald Trump’s tariff policies, which could shape the metal's trajectory next year.

Gold was steady as traders weighed the outlook for monetary policy after the Federal Reserve’s preferred measure of underlying inflation came in below expectations last week.

Gold prices remained steady as investors anticipated fewer interest rate cuts from the Federal Reserve in 2025 amid the approaching Christmas holiday. Despite a benign U.S. inflation reading, markets are pricing in minimal easing next year.