Gold prices remained stable on Tuesday as investors evaluated the ongoing U.S.-Iran peace negotiations, while increasing anticipation of a Federal Reserve interest rate increase in December exerted pressure on the metal. Spot gold was steady at $4,191.09 per ounce, as of 0053. U.S. gold futures for August delivery increased by 0.2%, reaching a price of $4,208.40. The United States waived sanctions on Iran for 60 days from Monday following the initial discussions under a nascent peace deal, while officials indicated a continued lull in fighting in Lebanon under the agreement designed to conclude hostilities throughout the region.

U.S. Vice President JD Vance indicated that discussions with Iranian officials in Switzerland had established a solid groundwork for a conclusive peace agreement, despite Iran’s denial of initiating talks regarding its nuclear program. Fed Chairman Kevin Warsh is set to present his inaugural testimony on monetary policy to Congress on July 14, as indicated by a hearing notice released by the House Financial Services Committee. Chicago Fed President Austan Goolsbee indicated that, given the stability of the labour market, his attention is directed toward assessing whether persistently high inflation will endure or if it will diminish as the impact of elevated tariffs wanes and the situation in the Middle East reaches a resolution.

Traders currently assign an 89% probability to an interest rate increase in December, a notable rise from the 61% observed prior to the Federal Reserve meeting last week, as indicated by the CME FedWatch Tool. Gold speculators increased their net long positions by 9,258 contracts, bringing the total to 112,918 for the week ending June 16. Spot silver declined by 0.4% to $64.92 per ounce, platinum decreased by 0.4% to $1,672.90, whereas palladium experienced a slight increase of 0.1% to $1,266.35.