Gold prices were largely unchanged during Asian trading on Tuesday, remaining close to an 11-week low as the suspension of hostilities between Iran and Israel reduced some concerns over inflationary pressures. Investors also remained cautious ahead of key U.S. inflation figures due later this week, which could offer fresh guidance on the Federal Reserve’s interest-rate outlook.
Spot gold was up 0.1% at $4,333.40 per ounce as of 02:33 ET (06:33 GMT), while U.S. Gold Futures for August slipped 0.1% to $4,358.82 an ounce.
During the previous session, the precious metal touched its weakest level since March 23 before recovering part of its losses and finishing the day broadly unchanged.
Gold has faced sustained pressure since stronger-than-anticipated U.S. employment data released last week reinforced expectations that the Federal Reserve may maintain higher interest rates for an extended period.
Financial markets are currently pricing in approximately a 70% probability that the Fed will raise interest rates by December.
Investor sentiment improved after Iran and Israel agreed to halt military operations following a renewed escalation in tensions over the weekend.
On Monday evening, U.S. President Donald Trump said the United States was nearing a “total victory” in the conflict with Iran and suggested that oil prices could decline significantly.
Although gold is traditionally regarded as a safe-haven asset, its performance throughout much of the Gulf conflict has been relatively subdued. The impact of the war on energy markets has created an unusual backdrop for bullion.
Rising crude oil prices have heightened fears that energy-driven inflation may remain persistent, leading investors to reduce expectations for future Federal Reserve rate cuts. This has boosted both U.S. Treasury yields and the dollar, making non-yielding assets such as gold less attractive.
The U.S. Dollar Index fell 0.2% on Tuesday after reaching a two-month high in the previous trading session.
Attention is now turning to U.S. consumer inflation data due on Wednesday and producer price figures scheduled for Thursday. These releases may provide further insight into whether the recent rise in oil prices is beginning to feed through into broader inflation trends.
Among other precious metals, silver advanced 0.4% to $68.42 per ounce, while platinum gained 0.3% to $1,767.60 per ounce.
In base metals, benchmark copper futures on the London Metal Exchange rose 0.4% to $13,666.13 per tonne, while U.S. copper futures added 0.5% to $6.37 per pound.