Gold Holds Steady as Markets Weigh U.S.-Iran Tensions and Ceasefire Prospects
Gold prices stabilized in Asian trading on Tuesday, following a pullback in the previous session as investors grappled with uncertainty over potential U.S. involvement in the Israel-Iran conflict and mixed signals around a possible ceasefire.
The precious metal gave back much of its recent rally on Monday after reports emerged suggesting Iran was open to a truce, triggering a wave of risk-on sentiment. However, Tehran later denied any intention to seek a ceasefire while under attack from Israel. A stark warning from U.S. President Donald Trump further heightened fears of an imminent escalation.
As of 01:12 ET (05:12 GMT), spot gold edged up 0.2% to $3,392.25 per ounce, while August gold futures dipped 0.2% to $3,410.70 per ounce.
Geopolitical Risks Intensify Amid Trump Statement and Diplomatic Buzz
On Monday evening, Trump urged civilians to “immediately evacuate Tehran,” intensifying concerns about the trajectory of the conflict. Though the White House later clarified that the U.S. does not intend to join the fighting directly, Trump continued to take a hard line on Iran’s nuclear ambitions.
Meanwhile, a report from Axios indicated that backchannel efforts for dialogue between Washington and Tehran were still underway following the cancellation of planned nuclear negotiations over the weekend. According to the report, both nations are attempting to arrange new discussions related to a ceasefire and the nuclear issue, though no specific timeline has been confirmed.
Conflicting narratives around the conflict—which escalated after Israeli strikes targeted Iranian nuclear sites last week—dampened gold’s upward momentum. On Monday, prices briefly climbed above $3,450 before reversing sharply.
Analysts at Citi cautioned that gold could retreat below $3,000 per ounce in the coming quarters as the recent historic rally begins to fade. They also expect investor interest in the metal to cool in the near term.
Fed Meeting Keeps Pressure on Metals Market
Broader metals markets traded lower on Tuesday as investors awaited this week’s Federal Reserve decision, which kept enthusiasm for commodities muted.
- Platinum futures declined 0.1% to $1,239.90 per ounce, pulling back from a strong performance over the past month.
- Silver futures gained 0.2% to $36.503 per ounce.
- On the industrial side, London copper futures dropped 0.4% to $9,674.75 per ton, while U.S. copper futures held steady at $4.8163 per pound.
Despite a slightly weaker dollar, metal prices found little support as traders continued favoring the greenback in the lead-up to the Fed announcement.
The central bank is widely expected to keep rates unchanged on Wednesday, but all eyes will be on Fed Chair Jerome Powell’s remarks for any indication of future monetary policy direction.
