Gold prices edged higher in Europe after sharp losses Monday.
The metal rebounded above 4350 dollars following heavy profit-taking pressure.
Monday’s decline marked gold’s largest daily drop since October trading.
Selling accelerated after CME raised margin requirements on metals futures.
Higher margins forced traders to reduce exposure and rebalance portfolios.
Despite pressure downside risks stayed limited by rate cut expectations.
Markets increasingly anticipate United States interest rate cuts in 2026.
Lower yields reduce opportunity costs of holding non-yielding gold assets.
Safe-haven demand also supported prices amid persistent geopolitical tensions globally.
Russia accused Ukraine of drone strikes escalating regional uncertainty concerns.
Ukraine denied allegations saying Moscow sought justification for further attacks.
Thin holiday trading kept volumes light ahead of year-end positioning.
Investors awaited FOMC minutes for clues on policy direction signals.
United States housing data surprised positively with stronger pending sales.