Gold prices held steady on Tuesday after touching a more than one-week high in the previous session, as investors awaited further clarity on developments surrounding a reported U.S.-Iran peace agreement. Market participants remained cautious amid uncertainty over the timeline and final terms of the deal.
Spot gold rose 0.2% to $4,315.87 per ounce at 0231 GMT, after gaining as much as 3.6% on Monday to reach its highest level since June 5. U.S. gold futures for August delivery slipped 0.3% to $4,337.10.
Market Drivers And Global Signals
Investor sentiment was influenced by comments from U.S. President Donald Trump, who said a preliminary agreement to end the war in the Gulf had been signed by the United States and Iran. However, both sides have indicated that a permanent truce has not yet been finalized.
Analysts said the recent rally in gold was driven by geopolitical uncertainty and expectations around the peace process. Edward Meir, an analyst at Marex, said the “euphoria rally” could continue in the short term depending on developments in the coming days.
Dollar Trend And Central Bank Outlook
The U.S. dollar remained near 10-day lows ahead of the Bank of Japan’s interest rate decision. Investors are also watching the U.S. Federal Reserve’s upcoming policy announcement, where rates are widely expected to remain unchanged.
Market analysts said expectations around future rate cuts could influence both the dollar and gold prices, with a more dovish stance likely to support further gains in bullion.
Gold typically loses appeal in high-interest-rate environments as it does not yield returns.
Other Precious Metals
In other metals, silver fell 1% to $69.29 per ounce, platinum declined 0.9% to $1,751.55, and palladium dropped 1.6% to $1,327.27.
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