Gold (XAU/USD) edges higher on Tuesday as buying interest around the $4,000 psychological level supports prices, while traders assess developments in the Middle East and their potential economic fallout.
At the time of writing, XAU/USD trades around $4,060, up 1.30% on the day
The United States military carried out a tenth consecutive night of strikes against Iran on Monday, while Iran’s Revolutionary Guards targeted US military assets across the region. Despite the continued military exchanges, diplomatic efforts are underway. The Associated Press reported that Iranian officials began meeting with mediators in Pakistan on Tuesday.
Reuters reported on Monday that mediators had offered Tehran a 10-day ceasefire to try to bring last month’s interim agreement back on track. With the situation still in flux, the US Dollar (USD) remains the preferred safe-haven asset, while Oil prices hold close to their highest level in more than a month. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, is hovering around 101.00, little changed on the day.