During Tuesday’s Asian trading session, gold prices held steady just under the $3,400 per ounce level as investors absorbed conflicting developments related to the Israel-Iran conflict and awaited guidance from the U.S. Federal Reserve.
Spot gold edged up slightly by 0.2% to $3,392.25 per ounce, while August gold futures slipped 0.2% to $3,410.70 as of 01:12 ET (05:12 GMT). The metal had climbed above $3,450 on Monday but retreated sharply following reports about possible ceasefire discussions.
Geopolitical Tensions Provide Support, but Uncertainty Persist
The bullion market remained volatile amid evolving news from the Middle East. Early reports indicated Iran might consider a ceasefire, yet Tehran subsequently dismissed any truce while facing Israeli strikes. Adding to the tension, U.S. President Donald Trump issued a stark warning urging all personnel to evacuate Tehran immediately, raising fears of further U.S. involvement.
Despite these remarks, White House officials stressed that no direct U.S. military intervention is planned. Meanwhile, according to Axios, diplomatic efforts are quietly underway between U.S. and Iranian representatives to explore both ceasefire options and the status of Iran’s nuclear program, though no official meetings have been scheduled.
Cautious Market Sentiment
The gold rally appears to be losing momentum as uncertainty weighs on investor confidence. Analysts from Citi have projected that gold prices could fall below the $3,000 per ounce mark in the next few quarters as demand for safe-haven assets decreases and overall investor interest cools.
Federal Reserve Meeting Adds Pressure on Metals
Ahead of the Federal Reserve’s policy announcement scheduled for Wednesday, broader metals markets are experiencing downward pressure. While interest rates are expected to remain unchanged, traders are closely monitoring for any hints from Fed Chair Jerome Powell regarding future monetary policy direction.
In other metals:
- Platinum futures eased 0.1% to $1,239.90 per ounce, continuing a mild correction after recent gains.
- Silver futures gained 0.2%, rising to $36.503 per ounce.
- Copper prices softened, with London futures down 0.4% to $9,674.75 per ton, while U.S. contracts held steady at $4.8163 per pound.
A weaker dollar offered minimal support for metals, as caution prevailed among market participants due to both the Fed’s upcoming decision and ongoing geopolitical uncertainty in the Middle East.