Gold Prices Hold Steady Amid Middle East Tensions and Fed Rate Decision Focus

Gold prices stabilized in Asian markets on Tuesday, following a pullback triggered by mixed signals around the Israel-Iran conflict and U.S. involvement. Spot gold edged up 0.2% to $3,392.25 per ounce, while August gold futures slipped 0.2% to $3,410.70.

Monday saw bullion surge above $3,450 before reversing, as reports of Iran seeking a ceasefire sparked risk-on sentiment. However, Iran later denied any intention to negotiate under Israeli attacks. U.S. President Donald Trump intensified concerns with a stark warning to “immediately evacuate Tehran,” though the White House clarified the U.S. would not engage directly in the conflict.

Despite the heightened geopolitical risk, reports from Axios suggested Washington is still pursuing diplomatic talks with Tehran regarding both a ceasefire and the nuclear deal, though no date has been confirmed. Uncertainty over Middle East developments continues to influence gold market direction.

Meanwhile, broader precious and industrial metals were under pressure as investors await the Federal Reserve’s policy decision. The Fed is expected to keep rates unchanged, but traders are watching Chair Jerome Powell’s comments for signals on future monetary policy.

Among other metals, silver rose 0.2% to $36.503 per ounce, while platinum dipped 0.1% to $1,239.90. Copper prices weakened, with London futures down 0.4% to $9,674.75 per ton, and U.S. copper flat at $4.8163 per pound. Despite a softer U.S. dollar, sentiment remained cautious ahead of the Fed announcement.

Citi analysts warned that gold could drop below $3,000 in the coming quarters as the current rally loses momentum. Investor demand for safe-haven assets like gold may also decline if geopolitical tensions ease and interest rates remain elevated.