Gold prices were largely steady on Tuesday after dropping to a one-week low in the last session. Investors are waiting to see if the U.S. and Iran will meet this week for peace talks following renewed tensions over the weekend. Spot gold was unchanged at $4,820.84 per ounce, after falling to its lowest level since April 13 in the previous session. U.S. gold futures for June delivery rose 0.3% to $4,841.20.
Oil prices fell as investors reassessed supply risks, anticipating that peace talks will allow more supply from the key Middle East region. The two-week ceasefire, which has impacted the global economy and energy markets, is set to expire this week. Analysts at OCBC noted that markets are in a wait-and-see mode after the Strait of Hormuz was re-closed and the U.S. seized an Iranian vessel.
Meanwhile, Kevin Warsh, U.S. President Donald Trump’s nominee to lead the Federal Reserve, will affirm his commitment to monetary policy independence at his Senate confirmation hearing. The SPDR Gold Trust reported a 0.7% increase in its holdings to 966.72 metric tons on Friday. Among other metals, spot silver fell 0.1% to $79.82 per ounce, platinum lost 0.1% to $2,087.15, while palladium rose 0.8% to $1,564.48.
