Gold prices were broadly stable in Asian trading on Tuesday, lingering close to an 11-week low as easing tensions between Iran and Israel reduced demand for safe-haven assets. Investors are also looking ahead to key U.S. inflation data later this week that could shape expectations for future Federal Reserve policy.
Spot gold edged up 0.1% to $4,333.40 an ounce by 02:33 ET (06:33 GMT), while August U.S. gold futures slipped 0.1% to $4,358.82 an ounce.
The precious metal had fallen to its weakest level since March 23 during the previous session before recovering and ending the day largely unchanged.
Pressure on bullion has intensified since stronger-than-expected U.S. employment figures released last week strengthened the case for the Federal Reserve to keep borrowing costs higher for longer.
Market pricing currently implies around a 70% likelihood of another Fed rate increase by the end of the year.
Risk appetite improved after Iran and Israel agreed to suspend military action following renewed clashes over the weekend.
U.S. President Donald Trump said on Monday evening that Washington was approaching a “total victory” in the conflict involving Iran and predicted that oil prices would likely move sharply lower.
Although gold is typically viewed as a defensive asset during periods of geopolitical uncertainty, the metal has struggled to attract sustained buying interest throughout much of the Gulf conflict. The impact of the war on energy markets has altered the usual relationship between geopolitical risk and bullion prices.
The surge in crude oil prices has heightened concerns that energy-related inflation could remain persistent, prompting investors to scale back expectations for interest-rate cuts. As a result, Treasury yields and the U.S. dollar have strengthened, reducing the attractiveness of non-interest-bearing assets such as gold.
The U.S. Dollar Index slipped 0.2% on Tuesday after reaching its highest level in two months during the previous trading session.
Investors are now focused on U.S. consumer price inflation figures due on Wednesday, followed by producer price data on Thursday. The reports are expected to provide fresh insight into whether rising energy costs are beginning to feed into broader inflation trends.
Elsewhere in the precious metals market, silver gained 0.4% to $68.42 per ounce, while platinum advanced 0.3% to $1,767.60 per ounce.
Industrial metals also moved higher, with benchmark copper futures on the London Metal Exchange rising 0.4% to $13,666.13 a tonne. U.S. copper futures climbed 0.5% to $6.37 per pound.
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