Gold prices held steady on Tuesday as investors assessed a partial ceasefire between Hezbollah and Israel, while awaiting further details on U.S.-Iran negotiations, amid growing concerns about inflation and possible interest rate hikes. Spot gold held steady at $4,484.49 per ounce, as of 0048. Gold futures in the U.S. rose by 0.2%, reaching $4,514.30. On Monday, Lebanon announced a partial ceasefire between Hezbollah and Israel, marking a slight reduction in the intensity of a conflict that has led to numerous casualties and intensified the broader war involving Iran.

On Monday, Iranian state media announced that Tehran is halting indirect negotiations with the U.S. and might end a ceasefire that has largely been in place since early April, citing the ongoing conflict in Lebanon as the reason for this decision. U.S. President Donald Trump mentioned that talks with Iran were advancing quickly. Investors are paying close attention to the upcoming U.S. non-farm payroll data and the employment report, set to be released later this week. They aim to assess the strength of the labour market amid growing inflation worries linked to the situation in the Middle East.

Remarks from U.S. Federal Reserve policymakers, including Cleveland Fed President Beth Hammack and Fed Governor Michael Barr, are also in focus to gauge the future monetary policy path. SPDR Gold Trust, known as the largest gold-backed exchange-traded fund in the world, has reported a 0.3% decrease in its holdings, resulting in a total of 938.03 metric tonnes as of Friday. Spot silver increased by 0.2% to $74.92 per ounce, platinum saw a rise of 0.3% to $1,928.65, whereas palladium decreased by 0.2% to $1,359.25.