Spot gold traded near $4,055. Prices remained above the key $4,000 per ounce threshold on Tuesday. Investors are evaluating Middle East geopolitical risks alongside potential shifts in U.S. Federal Reserve policy.
Diplomatic efforts to de-escalate the U.S.-Iran conflict reduced fears of oil-driven inflation. Markets now focus on the Federal Reserve’s upcoming meetings. The Fed will likely hold rates steady at its next meeting. Investors currently price in a potential interest rate hike for September.
Higher interest rates typically pressure non-yielding gold. The metal finds support as investors weigh inflation against potential economic slowdowns. Analysts view the $4,000 support level as a sign of market resilience.