Gold Prices Hold Steady Amid Uncertain US-Iran Diplomacy
Gold prices held steady on Tuesday amidst uncertain US-Iran diplomacy and strong American employment figures. Spot gold rose 0.2% to $4,062.41 an ounce by 5:04 AM GMT.
The metal has been stuck in a tight range of $4,000-$4,200 as investors weigh the potential for a US rate increase against geopolitical tensions.
Bas Kooijman, CEO of DHF Capital, believes that progress towards an agreement between Washington and Tehran could lower oil prices and ease inflation fears, potentially pulling bond yields down and reducing the opportunity cost of holding gold.
The immediate catalysts for price movement are US labor reports, with investors awaiting job-openings figures, private-payroll data, and Friday's nonfarm-payroll report for evidence that employment is cooling.