Gold Prices Show Signs of Stabilizing Amid Easing Tensions

Gold prices have shown signs of stabilizing after a prolonged corrective phase. According to Manav Modi, Senior Analyst at Motilal Oswal Financial Services Ltd., gold has rebounded from recent lows and moved back above its 20-day average.

The recovery is attributed to easing geopolitical tensions and a weaker US dollar, which improved sentiment towards bullion. However, gains may remain capped ahead of the Federal Reserve's policy decision.

Investors are closely monitoring the Fed's policy meeting, where interest rates are expected to remain unchanged. Market participants will also watch upcoming US inflation and labour market data for guidance on future monetary policy.