Gold prices were largely steady on Tuesday after rising to a more than one-week high in the previous session, as investors awaited further details on the U.S.-Iran peace deal.
Spot gold was up 0.2% at $4,315.87 per ounce, as of 0231 GMT, after rising as much as 3.6% on Monday to hit its highest level since June 5.
U.S. gold futures for August delivery were down 0.3% at $4,337.10.
U.S. President Donald Trump said on Monday a preliminary agreement to end the war in the Gulf has been signed by the U.S. and Iran, though details have yet to be made public and both countries said a permanent truce is yet to be negotiated.
“We have had a good run in gold prices ever since late Thursday on the Iran news. I think this euphoria rally might last for another few days culminating in Friday’s signing ceremony,” said Edward Meir, an analyst at Marex.
The U.S. dollar held near 10-day lows ahead of the Bank of Japan’s interest rate decision.
Investors are also watching out for the Federal Reserve policy decision and remarks, the first under Chair Kevin Warsh, on Wednesday, with rates widely expected to remain unchanged.
“Markets are expecting no rate decreases this year. If Warsh signals that at least one cut could be on the table later this year, the dollar should decrease further and we could see another rally in gold,” Meir said.
“However, if he comes across as more hawkish on rates, gold could come under some pressure.”
Gold loses appeal in a high-interest-rate environment as it is a non-yielding asset.
Meanwhile, Citi raised its 0-3 month gold price forecast by $500 to $4,500 per ounce.
Spot silver fell 1% to $69.29 per ounce, platinum lost 0.9% to $1,751.55, and palladium was down 1.6% to $1,327.27.
