Gold prices moved higher on Tuesday, recovering from the previous session’s decline as investors continued to navigate uncertainty surrounding negotiations between the United States and Iran.
The precious metal had come under pressure on Monday after reports suggested that Tehran had suspended peace discussions with Washington following an escalation in Israeli military operations in Lebanon.
The development heightened concerns that instability in the Middle East could persist, adding to geopolitical risks and increasing uncertainty across financial markets.
Spot gold gained 0.9% to $4,524.51 per ounce by 01:43 ET (05:43 GMT), while gold futures climbed 1.1% to $4,553.70 per ounce.
Investors Await Clearer Signals on U.S.-Iran Discussions
Attention remained firmly focused on whether diplomatic efforts between Washington and Tehran were progressing.
U.S. President Donald Trump delivered contrasting messages regarding the state of the negotiations. Earlier, he indicated that he was unconcerned if Iran had chosen to step away from the talks.
Later, however, Trump said discussions were continuing and expressed confidence that an agreement could be reached within the next week to prolong the ceasefire and facilitate the reopening of the Strait of Hormuz.
A partial ceasefire announced between Israel and Hezbollah helped ease some market concerns, particularly because Iran has repeatedly insisted that Lebanon be included in any broader regional agreement.
Even so, uncertainty surrounding the status of U.S.-Iran talks continued to leave investors cautious.
Since the conflict began, fears that an extended period of hostilities could fuel inflation and keep interest rates elevated have weighed on demand for gold, despite its traditional role as a safe-haven asset.
Precious Metals Recover Alongside Gold
The rebound in gold was accompanied by gains across the broader precious metals market.
Spot silver rose 2.2% to $76.5275 per ounce, while platinum advanced 1.8% to $1,963.58 per ounce.
The recovery reflected renewed investor interest after recent weakness driven by geopolitical developments and shifting expectations regarding monetary policy.
OCBC Revises Gold Outlook Lower
OCBC lowered its forecast for gold prices on Tuesday, citing a less supportive environment for bullion.
The bank pointed to persistently high energy costs and expectations that the Federal Reserve could maintain a restrictive monetary stance for longer than previously anticipated.
As a result, OCBC now expects gold to finish the year at approximately $5,100 per ounce, compared with its earlier projection of $5,350 per ounce.
The bank also highlighted softer physical demand from India, noting that higher import duties imposed by New Delhi are likely to weigh on consumer purchases and overall market demand.
Central Bank Purchases Remain a Key Source of Support
Despite reducing its annual forecast, OCBC maintained a positive longer-term assessment of the gold market.
The bank described the broader environment for gold as “somewhat constructive,” emphasizing the continued appetite for bullion among central banks.
Official-sector buying played a major role in driving gold’s strong gains during the first part of 2026 and remains an important pillar of support for prices as investors contend with inflation risks, interest-rate uncertainty and ongoing geopolitical tensions.
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