Gold Prices Remain Stable Amid Speculation Over US-Iran Diplomatic Developments

Gold Steadies Amid Iran War Uncertainty

Gold prices steadied in early trading, as traders weighed the prospects for a negotiated settlement to the war in Iran that has disrupted global energy supplies and heightened inflation risks. The precious metal was near $4,830 an ounce, having lost 0.2% in the previous session.

The conflict in the Middle East, now in its eighth week, has triggered an unprecedented energy-supply shock that has intensified inflationary pressures, making central banks more likely to hold interest rates steady or even raise them. This is a headwind for non-yielding bullion, which has lost nearly 9% since the conflict began in late February.

US Vice President JD Vance is heading to Pakistan for the next round of talks, while Iran is also sending a delegation, according to people familiar with the plans. US President Donald Trump said a two-week ceasefire is due to expire on "Wednesday evening Washington time." Oil prices slipped on Tuesday, after US equities fell on Monday from record highs.

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Investors will also be watching Trump's pick to head the Federal Reserve, Kevin Warsh, as he maps out his plans before the Senate Banking Committee. Any sense that Warsh will push for monetary easing this year would likely support bullion, while greater caution around inflation — and a reluctance to cut rates — would be negative for gold.

Spot gold edged up 0.2% to $4,831.17 an ounce at 6:10 a.m. in Singapore, while silver was 0.4% higher at $80.05 an ounce. The Bloomberg Dollar Spot Index, a gauge of the US currency, ended the previous session down 0.1%.