Gold prices edged higher on Tuesday as investors continued to assess the implications of a preliminary US-Iran peace agreement while awaiting clarity on the durability of the deal and its broader impact on monetary policy expectations.
Spot gold rose 0.3% to US$4,317.43 per ounce, extending gains for a fourth straight session, while US gold futures for August delivery slipped 0.3%. The move comes after gold touched a more than one-week high in the previous session, supported by renewed safe-haven demand following geopolitical developments.
The preliminary agreement between the US and Iran has eased concerns over immediate escalation in the Persian Gulf, though uncertainty over implementation has kept investors cautious. Traders are also positioning ahead of the Federal Reserve’s policy decision, with rates widely expected to remain unchanged, while shifting expectations around potential rate cuts continue to influence bullion demand.
Gold typically benefits in lower interest rate environments as it does not offer yield, making it more attractive when policy expectations tilt dovish. However, the recent easing in rate cut bets following geopolitical developments has added volatility to price direction.
On the technical front, RHB Investment Bank Bhd said COMEX gold closed at US$4,351.60 after a rebound, with sentiment improving in the near term. However, the research house flagged US$4,400 as a key resistance level, noting that failure to break above it could trigger renewed downside pressure towards US$4,000, with deeper support seen at US$3,700.
Spot silver, platinum and palladium all declined slightly in early trade, reflecting a broader cautious tone across precious metals markets as investors weigh macroeconomic signals against geopolitical risk premiums.
