Gold prices moved higher on Tuesday, recovering a portion of their recent declines as investors continued to assess the uncertain state of diplomatic discussions between the United States and Iran.
The precious metal had come under pressure during the previous session after reports indicated that Iran had suspended peace talks with Washington following an escalation of Israeli military activity in Lebanon.
That development intensified fears that tensions in the Middle East could persist for an extended period, increasing geopolitical risks across global markets.
Spot gold rose 0.9% to $4,524.51 per ounce by 01:43 ET (05:43 GMT), while gold futures advanced 1.1% to $4,553.70 per ounce.
Markets Seek Direction on U.S.-Iran Talks
Investors remained focused on developments surrounding a potential agreement between the United States and Iran, with uncertainty continuing to dominate sentiment.
U.S. President Donald Trump delivered mixed messages regarding the status of negotiations. Earlier, he suggested that he was unconcerned if Iran had chosen to abandon the talks.
Later, however, Trump stated that discussions between the two countries were still underway and said he expected an agreement to be reached within the next week that would extend the ceasefire and allow the reopening of the Strait of Hormuz.
A partial ceasefire announced between Israel and the Lebanese group Hezbollah provided some relief to financial markets, particularly because Iran has repeatedly insisted that Lebanon be included in any broader ceasefire arrangement.
Nevertheless, the absence of clear information regarding U.S.-Iran negotiations continued to fuel uncertainty among investors.
Since the outbreak of the conflict, concerns that a prolonged war could trigger higher inflation and interest rates have been a significant factor weighing on gold prices.
Silver and Platinum Also Rebound
Other precious metals joined gold in recovering from recent weakness.
Spot silver climbed 2.2% to $76.5275 per ounce, while platinum gained 1.8% to reach $1,963.58 per ounce.
The broader recovery across the precious metals complex reflected improving investor demand following recent volatility tied to geopolitical developments and shifting expectations for monetary policy.
OCBC Lowers Gold Forecast for 2026
OCBC revised its outlook for gold lower on Tuesday, arguing that the environment for bullion has become less supportive due to elevated energy prices and expectations that interest rates could remain higher for longer.
The bank now expects gold to finish the year at approximately $5,100 per ounce, compared with its previous forecast of $5,350 per ounce.
According to OCBC, weaker physical demand from India is also likely to weigh on the market after the Indian government increased tariffs on gold imports.
Central Bank Demand Continues to Offer Support
Despite trimming its price forecasts, OCBC maintained a constructive longer-term view on the precious metal.
The bank said that the structural backdrop for gold remains “somewhat constructive,” pointing to continued buying activity from central banks around the world.
Central bank purchases were among the main drivers behind gold’s strong rally during the early months of 2026 and continue to provide an important source of support for the market even as investors navigate inflation risks, interest-rate expectations and geopolitical uncertainty.