Gold steady as investors weigh Middle East risks, stalled US–Iran peace talks
- Spot gold was up 0.2% at $4,528.99 per ounce
Gold prices were largely steady on Tuesday, as investors weighed the economic fallout of escalating tensions in the Middle East amid stalled peace talks between the US and Iran.
Fundamentals
Spot gold was up 0.2% at $4,528.99 per ounce, as of 0059 GMT. Bullion fell over 2% to its lowest level since March 31 in the previous session.
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US gold futures for June delivery rose 0.1% to $4,538.20.
The U.S. and Iran launched new attacks in the Gulf on Monday as they wrestled for control over the Strait of Hormuz with maritime blockades, shaking a fragile truce.
The U.S. military said on Monday it destroyed six Iranian small boats and intercepted Iranian cruise missiles and drones as Tehran sought to thwart a new U.S. naval effort to open shipping through the Strait of Hormuz.
U.S. crude eased more than 1% as the market weighed the impact of Iranian attacks on ships in the Strait of Hormuz and news that a US-flagged ship operated by Maersk had transited the strait accompanied by the US military.
New York Federal Reserve President John Williams said on Monday that US monetary policy is “well-positioned” to deal with a high level of economic uncertainty generated by the Middle East war, as he expressed expectations that once the current inflation surge has abated, the central bank can again turn its attention to lower rates.
US President Donald Trump posted on social media on Monday that interest rates were too high, having called for months for the base rate to be cut.
SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings remained steady at 1,040.66 metric tons on Friday.
Spot silver edged 0.1% higher to $72.76 per ounce, platinum gained 0.5% to $1,954.80, and palladium was up 0.8% at $1,491.84.
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