Gold Corrects Amid Uncertainty Over US-Iran Talks
Gold prices weakened as market participants weighed the chances of a peace deal in the Iran conflict. Meanwhile, spot gold fell 0.7% to US$4,785 per ounce, after previously falling as much as 1%.
Pressure stemmed from uncertainty over the direction of US-Iran talks ahead of the ceasefire. US President Donald Trump said Vice President JD Vance was ready to depart for negotiations in Islamabad, while Iran has yet to confirm who will represent Tehran. Trump also said the two-week ceasefire would end "Wednesday night Washington time" and was unlikely to be extended.
Motilal Oswal Financial Services analyst Manav Modi assessed that the market remains "jittery" waiting to see whether negotiations actually happen before the deadline, amid conflicting signals from both sides. Geopolitical uncertainty and policy outlook are believed to be keeping gold under volatility pressure.
Across assets, oil prices weakened on Tuesday, while global equities rebounded after a brief pause. Entering its eighth week, the conflict is seen as triggering an energy supply shock that is exacerbating inflationary pressures, leading central banks to tend to keep interest rates high or even raise them—a condition that generally presents a drag on non-yielding gold; gold is said to have fallen around 10% since the conflict began in late February.
Market participants are also closely monitoring the US agenda, with Fed chairman nominee Kevin Warsh presenting his plans before the Senate Banking Committee. Expectations of monetary easing this year have the potential to support gold, while a more cautious stance on inflation could weigh on it. Silver fell 1.2% to US$78.80, platinum and palladium also weakened, while the Bloomberg Dollar Spot Index edged higher. (gn)*
Source: Newsmaker.id
