Gold Price Range-Bound Amid US-Iran Tensions and Macro Data

The gold price has been range-bound for nearly six weeks, trading between $3950 and $4200. According to Praveen Singh, Head Currencies and Commodities at Mirae Asset ShareKhan, gold prices will continue to be influenced by US-Iran talks and macroeconomic data in America, which will provide direction to the Federal Reserve on its rate decisions.

Despite a sharp decline in oil prices, spot gold traded in a range of $4019-$4084 on August 3. The yellow metal was trading with a loss of 0.15% at $4036 at the time of writing this article. Global oil prices began the month and the week with a sharp decline of over 5%, as the US and Israel cancelled a planned strike on Iran's energy infrastructure.

The US President Trump said that Iran talks will begin Monday as Hormuz and nuclear deals are imminent, but he did not offer much detail. Iran has issued a Gulf-wide energy hit list should Trump carry through strikes on the country's energy infrastructure.