Gold prices remained largely steady on Tuesday as investors waited for clearer signals from stalled U.S.-Iran peace talks and a series of major central bank decisions later this week.

According to Reuters, spot gold slipped slightly by 0.1% to $4,679.06 per ounce, while U.S. gold futures for June delivery were nearly unchanged at $4,693.20 per ounce.

The key driver for gold remains geopolitical uncertainty. Peace negotiations between the United States and Iran have yet to deliver a clear breakthrough, while disruptions around the Strait of Hormuz continue to support oil prices. With energy markets still under pressure, investors are closely watching whether the conflict could reshape the global inflation and interest rate outlook.

For gold, the current environment creates a mixed picture. On one hand, prolonged geopolitical tensions tend to increase demand for safe-haven assets. On the other hand, rising oil prices can fuel inflation by increasing transportation and production costs. This may force central banks to keep interest rates higher for longer, which usually weighs on gold because it does not generate yield.

Marex analyst Edward Meir noted that geopolitical headlines remain the main driver of gold prices. He added that if the U.S. and Iran reach a deal, or even an interim agreement, the U.S. dollar could weaken and gold may break higher.

Attention is also turning to the Federal Reserve, which is widely expected to keep interest rates unchanged at the end of its two-day policy meeting. For now, markets do not expect the Fed to make any major move on rates, especially as inflation risks linked to oil and geopolitical tensions remain unresolved. However, some analysts believe rate cuts could still emerge later in the year if signs of a global slowdown become clearer.

Beyond the Fed, investors are also watching upcoming decisions from the Bank of Japan, the European Central Bank and the Bank of England. These central banks are facing a similar challenge: balancing slowing growth risks against renewed inflation pressure from higher energy prices.

Other precious metals traded mixed. Spot silver fell 0.8% to $74.91 per ounce, platinum rose 0.4% to $1,990.29, while palladium declined 0.7% to $1,466.44.

In the short term, gold remains caught between two opposing forces. Geopolitical risk continues to support safe-haven demand, while a stronger dollar, higher oil prices and the prospect of prolonged high interest rates are limiting upside momentum.

If U.S.-Iran negotiations show progress and the dollar weakens, gold could regain bullish momentum. However, if tensions continue to push oil prices higher and inflation concerns intensify, central banks may remain cautious, keeping gold within a narrower trading range.

For now, the gold market is not lacking information. It is dealing with too many moving pieces at once. In this environment, patience and disciplined observation may matter more than reacting to every headline.

Source: Reuters