Gold prices held steady on Tuesday, after reaching a high not observed in more than a week during the prior session. Investors are eagerly awaiting more details about the U.S.-Iran peace agreement. Spot gold rose by 0.1% to $4,311.36 per ounce as of 0049, after a more than 2% increase on Monday, marking its highest level since June 5. U.S. gold futures for August delivery decreased by 0.4%, settling at $4,332.60. U.S. President Donald Trump announced on Monday that a preliminary agreement to end the conflict in the Gulf has been signed by the U.S. and Iran.
Nevertheless, details are still not revealed, and both countries have suggested that a permanent ceasefire has yet to be discussed. The agreement aims to prolong a fragile ceasefire that was declared in April for an additional 60 days and to reopen the Strait of Hormuz, which has been largely obstructed by Tehran since the U.S. and Israel’s assault on Iran in February. Major stock indexes and bond prices saw a rally, while oil futures ended the day at a three-month low on Monday. Citi has revised its 0-3 month gold price forecast upwards by $500, now estimating it at $4,500 per ounce, suggesting that risk sentiment is anticipated to enhance more widely.
Investors are eagerly anticipating the Federal Reserve’s policy decision and remarks, the first under Chair Kevin Warsh, set for Wednesday, with expectations that rates will remain unchanged. India’s silver imports dropped significantly by 87% in May compared to the same month last year, hitting their lowest level in over three years, as per government data released on Monday. This decrease comes after the introduction of more stringent rules regarding imports in almost every category by the globe’s leading silver consumer.
Singapore will set up an over-the-counter gold clearing system and launch central bank gold-vaulting services, the deputy prime minister announced on Monday, as the city-state seeks to become a gold trading hub. Spot silver fell by 0.4% to $69.74 per ounce, platinum decreased by 0.4% to $1,761, and palladium saw a decline of 1.3% to $1,331.59.