Gold prices held steady on Tuesday, after dropping to a one-week low in the prior session. Investors are paying close attention to the developments to see if the U.S. and Iran will enter into peace discussions this week, following the increased tensions noted over the weekend. Spot gold held firm at $4,820.84 per ounce, as of 0101, after dropping to its lowest point since April 13 in the previous session. Gold futures in the U.S. for June delivery rose by 0.3%, hitting a price of $4,841.20. Oil prices fell as investors reassessed supply risks with the anticipation of peace talks between the U.S. and Iran happening this week, which could lead to a boost in supply from the vital Middle East production region.

Iran is considering joining peace negotiations with the United States in Pakistan, according to a senior Iranian official’s report on Monday. This consideration arises from Islamabad’s efforts to alleviate a U.S. blockade on Iran’s ports, which has significantly hindered Tehran’s reintegration into peace initiatives as the end of a two-week ceasefire approaches. The two-week ceasefire in the conflict that has led to numerous fatalities and affected the global economy, particularly energy markets, is set to end this week.

“Markets are now in a phase of careful monitoring after the recent re-closure of the Strait of Hormuz over the weekend and the U.S. seizure of an Iranian vessel. Analysts at OCBC observed that markets did not fully reverse Friday’s movements, suggesting a sense of careful optimism that a potential agreement is still within reach.” Meanwhile, Kevin Warsh, nominated by U.S. President Donald Trump to lead the Federal Reserve, will inform 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, known as the largest gold-backed exchange-traded fund in the world, announced a 0.7% rise in its holdings, totaling 966.72 metric tons on Friday. Among other metals, spot silver decreased by 0.1% to $79.82 per ounce, platinum declined by 0.1% to $2,087.15, while palladium experienced an increase of 0.8% to $1,564.48.