Gold Prices Steady Amid Middle East Talks
Gold prices remained steady on Tuesday as market participants closely monitored talks in the Middle East to gauge progress and its impact on interest rate expectations.
The US and Iran signaled that negotiations to restore shipping through the Strait of Hormuz are ongoing, which could ease pressure on the US Federal Reserve to raise interest rates. The Fed's Bank of New York president John Williams stated that interest rates remain well positioned as inflation is expected to ease during the second half of 2026.
Despite this, Citi Research analysts believe gold prices may stagnate or decline over the next month before rallying to $4,500 an ounce in the fourth quarter. They predict a normalization of Hormuz flows and lower real interest rates could boost investor interest in gold by September to December.