Spot Gold extended a pullback from a 1-month high on Tuesday as market players waited for more clarity over US-Iran peace talks following reignited tensions over the weekend.
According to a report by Reuters, Iran is considering taking part in peace talks with the United States in Pakistan after Islamabad efforts to end a US blockade of Iran’s ports.
According to The Guardian, US Vice President JD Vance is expected to travel to Islamabad at the head of a US diplomatic delegation on Tuesday in case Iran agrees to proceed with another round of talks in the Pakistani capital, as the deadline for the current ceasefire approaches.
Iranian Parliament speaker Mohammad Bagher Ghalibaf stated that Tehran would not enter negotiations under the “shadow of threats,” while US President Donald Trump said the blockade on Iranian ports would remain in place until Tehran agrees to a deal.
Market players are expecting “the next headline regarding whether the talks are going to go ahead in Islamabad and then if they do, whether the ceasefire is extended or even better, a peace deal is reached,” Kyle Rodda, senior financial market analyst at Capital.com, was quoted as saying by Reuters.
“If those things happen, gold will probably be well supported because oil prices will drop. If those things don’t come about, you might start to see some of that volatility come back into the market,” Rodda added.
A marginally firmer US Dollar also weighed on Gold, making the dollar-priced metal less appealing to international investors holding other currencies.
Spot Gold was last down 0.83% on the day to trade at $4,780.34 per troy ounce.
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