Gold Steady Amid US-Iran Conflict Uncertainty
Gold prices remained steady on Tuesday as investors grappled with conflicting signals from US-Iran talks. Spot gold held firm at $4,055.39 per ounce, while US gold futures rose 0.6% to $4,055.10.
US President Donald Trump claimed that negotiations with Iran were underway, calling it a 'last chance' for Tehran to sign a deal to end the five-month-old war. However, Iran denied any talks or planned discussions.
The conflict has driven up energy costs and stoked inflation fears, prompting central banks to consider raising interest rates. A 65% chance of a rate hike in September is currently priced in by traders.
Meanwhile, the Federal Reserve Bank of New York's President John Williams expressed optimism that inflation pressures are easing gradually, but warned that the central bank would not hesitate to respond with rate hikes if necessary.