Gold Holds Firm Amid Middle East Turmoil and Labor Market Uncertainty
Gold prices held steady on Tuesday as investors weighed mixed signals on potential US-Iran talks and awaited key labor market reports for clues on the Federal Reserve's interest rate trajectory. Spot gold rose 0.2% to $4,061.96 per ounce by 0650 GMT, while US gold futures increased 0.7% to $4,118.30.
The Federal Reserve's next move is highly anticipated as various reports on the US labor market are due out this week. The data includes job opening information later in the day, followed by the ADP employment report on Wednesday and nonfarm payrolls figures on Friday.
Ajay Kedia, director at Mumbai-based Kedia Commodities, noted that gold is currently in a consolidation phase. If the job market shows weakness, it could pressure the US dollar, leading to gains in gold prices.
US President Donald Trump said talks with Iran were underway, warning of a 'last chance' for Tehran to sign a good deal. However, Iran denied any negotiations or plans for them.