Safe-haven demand for gold stabilizes as traders assess potential easing of Middle East tensions through diplomatic negotiations.
Gold prices remained steady near $2,300 per ounce as investors monitored developments in US-Iran diplomatic talks. The potential peace deal has reduced immediate geopolitical risks, curbing demand for traditional safe-haven assets like gold.
Prices had climbed earlier in the week amid escalating tensions in the Middle East, but recent optimism around negotiations has tempered volatility. Analysts note that gold typically weakens when geopolitical risks recede, though long-term demand remains supported by central bank purchases and inflation concerns.
Markets showed muted reaction to the news, with spot gold trading flat in early Asian sessions. Traders are awaiting further details on the negotiations before adjusting positions.