Gold (XAU/USD) trades flat on Tuesday, extending its sideways grind as uncertainty surrounding US-Iran peace efforts and the Federal Reserve’s (Fed) monetary policy path keeps traders cautious.
At the time of writing, XAU/USD trades around $4,056 after touching an intraday high near $4,072
The precious metal has moved largely between $4,000 and $4,200 over the past month, with buyers and sellers showing little conviction. Diverging comments from Washington and Tehran suggest that lasting peace in the Middle East remains unlikely in the near term. US President Donald Trump says talks with Iran are taking place, while Tehran denies negotiating with Washington.
Trump has also warned that his latest offer is Iran’s “last chance” to reach a deal. Oil prices remain elevated as energy shipments through the Strait of Hormuz stay heavily restricted, although Iran and Oman are discussing a temporary safe shipping route. Higher energy costs are adding to inflation pressures, forcing worldwide central banks to maintain restrictive monetary policy or consider raising interest rates.