Gold prices remained relatively stable during Asian trading on Tuesday, retreating slightly after recent volatility sparked by escalating tensions between the US, Israel, and Iran. Spot gold edged up 0.2% to $3,392.25 per ounce, while August gold futures slipped 0.2% to $3,410.70 as of early New York trading.
The recent dip in prices followed reports suggesting Iran might seek a ceasefire, which briefly boosted risk appetite. However, Tehran quickly dismissed any intention of halting hostilities while under Israeli attack. Meanwhile, US President Donald Trump intensified concerns over a potential escalation by warning civilians to evacuate Tehran immediately. The White House later clarified that the US does not plan direct military involvement, though Trump maintained strong rhetoric against Iran’s nuclear ambitions.
Amid this uncertainty, Axios reported ongoing efforts by both US and Iranian officials to arrange talks on a ceasefire and nuclear deal, though no firm date has been set.
Gold prices briefly surpassed $3,450 per ounce Monday before falling back as conflicting news on the Israel-Iran conflict sapped investor confidence. Citi analysts cautioned that gold could fall below $3,000 per ounce in coming quarters as the recent record rally loses momentum and demand wanes.
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Other precious metals also saw modest declines. Platinum futures dropped 0.1% to $1,239.90 per ounce, retreating from recent gains, while silver futures inched up 0.2% to $36.50 per ounce.
Base metals softened as well, with London Metal Exchange copper futures down 0.4% at $9,674.75 per ton, and US copper futures holding steady near $4.82 per pound.
Despite a weaker US dollar, metal markets remained cautious, with investors awaiting Wednesday’s Federal Reserve interest rate announcement. The Fed is widely expected to hold rates steady, but market watchers will closely analyze Chair Jerome Powell’s remarks for signals about the future path of monetary policy.
The combination of geopolitical uncertainty and central bank policy decisions continues to shape the outlook for gold and metals in the near term.
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