Gold Prices Hold Steady Amid Geopolitical Jitters and Fed Anticipation

Gold prices stabilized in Asian trade on Tuesday, pausing after a sharp retreat in the previous session as conflicting signals from the Israel-Iran conflict and upcoming cues from the Federal Reserve created a volatile backdrop for bullion investors.

At 01:12 ET (05:12 GMT), spot gold rose 0.2% to $3,392.25 an ounce, while August gold futures fell 0.2% to $3,410.70/oz.

Confusion Over U.S. Role in Israel-Iran War Keeps Investors on Edge

Gold briefly surged past $3,450 on Monday, but gains were quickly reversed after reports surfaced that Iran was seeking a ceasefire. Risk appetite improved briefly, sapping demand for safe-haven assets.

However, Tehran denied any truce efforts, especially under continued Israeli attacks. President Donald Trump's warning urging evacuation of Tehran spooked markets, raising fears of a broader conflict. The White House later clarified that the U.S. won't take direct military action, though diplomatic efforts for a ceasefire are reportedly underway.

Citi: Gold May Pull Back Below $3,000/oz

Despite current volatility-driven support, Citi analysts expect gold to slide back below the $3,000/oz level in the coming quarters, citing waning investor demand and an overstretched rally.

Fed Decision Looms Over Metal Markets

The Federal Reserve's upcoming rate decision on Wednesday is another major overhang for precious metals. While no rate changes are expected, the market will be watching Chair Jerome Powell's comments for signs of future policy direction, particularly amid soft inflation and tepid growth.

Traders are currently leaning bullish on the dollar, keeping metals like gold under pressure despite a slightly weaker greenback.

Broader Metals Mixed

• Platinum futures dropped 0.1% to $1,239.90/oz

• Silver futures rose 0.2% to $36.503/oz

• London copper fell 0.4% to $9,674.75 a ton

• U.S. copper futures held steady at $4.8163 a pound

Most base metals struggled to gain momentum amid rising uncertainty and cautious trading ahead of the Fed's statement.

For tracking daily price action and historical performance in precious metals, refer to the Commodities API. To analyze macroeconomic impact on gold demand, consult the Economics Calendar for real-time indicators.