Gold Prices Hold Steady Amid US-Iran Talks and Jobs Report Uncertainty

Gold prices remained steady on Tuesday as investors navigated conflicting signals from US-Iran talks and awaited key US jobs reports for clues on the Federal Reserve's interest-rate path.

The spot price of gold held firm at $4,055.39 per ounce, while US gold futures rose 0.6% to $4,055.10.

US President Donald Trump stated that talks with Iran were underway, warning it was a 'last chance' for Tehran to sign a deal to end the five-month-old war. However, Iran denied any negotiations were being held or planned.

The conflict has driven up energy costs and stoked inflation fears, which could prompt central banks to raise interest rates to keep price pressures in check. The Federal Reserve Bank of New York President John Williams said he remained optimistic that inflation pressures are on track to ease gradually, but added that the central bank would not hesitate to respond with rate hikes if they don't.

The week is packed with labor market reports, including US job openings data due later Tuesday, the ADP employment report on Wednesday, and Friday's nonfarm payrolls figures. Data on Monday showed US manufacturing activity rose to its highest level in more than four years in July, though the Middle East conflict is straining supply chains and keeping input costs elevated.