Gold edged higher on Tuesday as markets absorbed signs of active diplomatic efforts to ease the conflict between the United States and Iran, with oil prices pulling back from the previous session’s highs.
Spot gold was up 0.5% at 4,023.56 dollars per ounce as of 01:46 GMT. US August gold futures rose 0.3% to 4,028 dollars.
Oil had climbed to its highest level in more than a month on Monday on the back of the latest Middle East escalation, but retreated Tuesday as traders weighed mediation reports against continued exchanges between the two sides.
Iran’s foreign ministry said intermediaries had submitted “proposals” to Tehran, indicating that diplomatic contacts remain active, though it offered no specifics.
The backdrop includes a growing debate among policymakers over whether further interest rate increases may be necessary to contain persistent inflation, a question set to dominate the Federal Reserve’s next meeting. Higher rates raise the opportunity cost of holding non-yielding assets like gold, which has historically weighed on prices.
Russia’s central bank said the country’s gold reserves stood at 73.4 million ounces, or 2,282 tonnes, as of 1 July, down 1.4 million ounces, or 43.5 tonnes, since the start of the year.
Among other precious metals, silver rose 0.9% to 56.93 dollars per ounce. Platinum fell 0.2% to 1,591.22 dollars, while palladium gained 0.3% to 1,256.68 dollars.
