Gold Prices Decline Despite Easing Inflation Concerns

Gold prices have declined despite easing concerns over inflation and interest rate hikes. The price of gold, which is traded as XAU/USD, dropped to around $4,050 per troy ounce during Asian hours on Tuesday.

The decline comes after a previous day's gain, but the metal may regain ground following US President Donald Trump's remarks indicating 'good talks' with Iran to resolve the Middle East conflict. The prospect of de-escalation sent oil prices lower, easing market concerns over rising inflation and further interest rate hikes.

However, Trump cautioned that the US remains prepared to resume military strikes if negotiations collapse, which may weigh on gold prices. Traders are also turning their attention to the Federal Reserve's upcoming policy decision this week, where central bank officials are widely expected to keep interest rates on hold.