Gold steady as investors await details of US-Iran peace deal

Gold prices were largely steady on Tuesday after rising to a more than one-week high in the previous session, as investors awaited further details ​on the U.S.-Iran peace deal.

Fundamentals

Spot gold was up 0.1% at $4,311.36 ‌per ounce, as of 0049 GMT, after rising over 2% on Monday to hit its highest level since June 5.

US gold futures for August delivery were down 0.4% ​at $4,332.60.

US President Donald Trump said on Monday a preliminary agreement to ​end the war in the Gulf has been signed by the ⁠U.S. and Iran, though details have yet to be made public and ​both countries said a permanent truce is yet to be negotiated.

The agreement ​would extend a tenuous ceasefire announced in April by another 60 days and reopen the Strait of Hormuz, which Tehran has effectively blocked since the U.S. and Israel attacked Iran ​in February.

Major stock indexes and bond prices rallied, while oil futures settled ​at a three-month low on Monday.

Citi raised its 0-3 month gold price forecast by $500 to $4,500 ‌per ⁠ounce, citing that risk sentiment is likely to turn higher more broadly.

Investors now await the Federal Reserve policy decision and remarks, the first under Chair Kevin Warsh, on Wednesday, with rates widely expected to remain unchanged.

India’s silver imports plunged ​87% in May ​from a year ⁠earlier to their lowest level in more than three years, government data showed on Monday, after the world’s largest consumer ​of the metal tightened curbs on imports in nearly ​all forms.

Singapore will establish an over-the-counter gold clearing system and introduce central bank gold-vaulting services, the deputy prime minister said on Monday, as the city-state looks to establish itself ⁠as ​a gold trading hub.

Spot silver fell 0.4% ​to $69.74 per ounce, platinum lost 0.4% to $1,761, and palladium was down 1.3% to $1,331.59.