Gold prices were largely steady on Tuesday after dropping to a one-week low in the last session, as investors waited to see if the U.S. and Iran are meeting this week for peace talks after renewed tensions over the weekend.
Spot gold was unchanged at $4,820.84 per ounce, as of 0101 GMT, after falling to its lowest level since April 13 in the previous session.
U.S. gold futures for June delivery rose 0.3% to $4,841.20.
Oil prices fell as investors reassessed supply risks on expectations peace talks between the U.S. and Iran will take place this week and allow more supply to flow from the key Middle East producing region.
Iran is considering attending peace talks with the United States in Pakistan, a senior Iranian official told Reuters on Monday, following moves by Islamabad to end a U.S. blockade of Iran’s ports, a significant obstacle to Tehran rejoining peace efforts as the end of a two-week ceasefire approaches.
The two-week ceasefire to the conflict that has killed thousands and roiled the global economy, particularly energy markets, is set to expire this week.
“Markets are back in wait-and-see mode after the Strait of Hormuz was re-closed over the weekend and the U.S. seized an Iranian vessel. Importantly, markets did not fully retrace Friday’s moves, signalling cautious optimism that an eventual deal is still achievable,” analysts at OCBC said in a note.
Meanwhile, Kevin Warsh, U.S. President Donald Trump’s nominee to lead the Federal Reserve, will tell lawmakers at his Senate confirmation hearing on Tuesday that he is “committed to ensuring that the conduct of monetary policy remains strictly independent,” according to prepared remarks released on Monday.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.7% to 966.72 metric tons on Friday.
Among other metals, spot silver fell 0.1% to $79.82 per ounce, platinum lost 0.1% to $2,087.15, while palladium was up 0.8% at $1,564.48.
