Gold prices were largely steady during Tuesday’s trading session after rising to their highest level in more than a week in the previous session. Investors are now waiting for further details on the U.S.-Iran peace deal, which could influence safe-haven demand and the short-term outlook for gold.

At the time of writing, spot gold was up 0.2% at $4,315.87 per ounce, after rising as much as 3.6% on Monday and reaching its highest level since June 5. Meanwhile, U.S. gold futures for August delivery fell 0.3% to $4,337.10 per ounce.

U.S. President Donald Trump said the United States and Iran had signed a preliminary agreement aimed at ending the war in the Gulf. However, the details have not yet been made public, and both sides said that a permanent ceasefire still needs to be negotiated.

According to analysts, gold’s recent rally has been supported by optimism surrounding the Iran-related news. However, the next move will depend largely on the U.S. dollar, the Federal Reserve’s policy signals, and clearer details from the peace agreement.

The U.S. dollar remained near a 10-day low, while investors also awaited the Bank of Japan’s interest rate decision and the Federal Reserve’s upcoming policy meeting. The Fed is widely expected to keep interest rates unchanged, but remarks from Chair Kevin Warsh will be closely watched by the market.

If the Fed signals that a rate cut could still be possible later this year, the U.S. dollar may weaken further and provide additional support for gold. On the other hand, if the Fed maintains a more hawkish tone on interest rates, gold could come under renewed pressure. Gold typically becomes less attractive in a high-interest-rate environment because it does not generate yield.

Market expectations for a U.S. rate hike in December have fallen to 57%, down from around 70% last week, following news of the U.S.-Iran peace deal. Meanwhile, Citi raised its 0–3 month gold price forecast by $500 to $4,500 per ounce.

Among other precious metals, spot silver fell 1% to $69.29 per ounce, platinum declined 0.9% to $1,751.55 per ounce, while palladium dropped 1.6% to $1,327.27 per ounce.

Overall, gold remains supported by expectations of a weaker U.S. dollar and market anticipation ahead of the Fed’s policy signals. However, with the details of the U.S.-Iran agreement still unclear, gold prices may continue to trade within a narrow range before forming a clearer direction.

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Source: Reuters