Gold Trapped in Range Amid US-Iran Tensions and Employment Data

Gold prices ticked up on Tuesday but remained stuck in a tight $4,000 to $4,200 range as investors weighed uncertain US-Iran diplomacy against resilient American employment. Spot gold rose 0.2% to $4,062.41 an ounce by 5:04 AM GMT.

Geopolitical tension supported demand for defensive assets, but higher energy costs and expectations of another US rate increase threatened to lift bond yields and reduce bullion's appeal. The market is awaiting job-openings figures, private-payroll data, and Friday's nonfarm-payroll report for evidence that employment is cooling.

Bas Kooijman, chief executive of DHF Capital, told The Wall Street Journal that US-Iran progress could lower oil prices, ease inflation fears, and pull bond yields down. However, a renewed escalation in the conflict could strengthen safe-haven demand.