Gold steady as investors focus on US-Iran peace talks

Gold prices were steady on Tuesday as investors assessed US-Iran peace talks, while rising expectations of a Federal Reserve interest rate hike ​in December weighed on the metal.

Spot gold was steady ‌at $4,191.09 per ounce, as of 0053 GMT. U.S. gold futures for August delivery rose 0.2% to $4,208.40.

The United States waived sanctions on Iran for 60 days from Monday ​after the first talks under a nascent peace deal, while ​officials reported a sustained lull in fighting in Lebanon under ⁠the agreement aimed at ending hostilities across the region.

US Vice ​President JD Vance said talks with Iranian officials in Switzerland had laid ​a good foundation for a final peace deal, although Iran denied that it had begun discussions of its nuclear programme.

Fed Chairman Kevin Warsh will deliver his first testimony ​on monetary policy before Congress on July 14, according to a ​hearing notice published by the House Financial Services Committee.

Chicago Fed President Austan Goolsbee ‌said ⁠that with the labour market stable, he is focused on figuring out whether too-high inflation will stay that way or if it will recede as the effect of high tariffs fades and if the conflict in the ​Middle East gets ​resolved.

Traders now ⁠see an 89% chance of an interest rate hike in December, up from 61% before the Fed meeting ​last week, according to the CME FedWatch Tool.

Gold ​speculators ⁠raised net long positions by 9,258 contracts to 112,918 in the week to June 16.

Spot silver fell 0.4% to $64.92 per ounce, platinum lost 0.4% ⁠to $1,672.90, ​while palladium was up 0.1% at $1,266.35.