Key Takeaways

• Mixed gold action: Spot gold edged down 0.1% to $4,729.18 per ounce, while U.S. gold futures gained 0.2% to $4,738.00.
• Modest Monday gain: The yellow metal rose 0.4% in the previous session.
• Trump’s harsh words: The president called Iran’s response a “piece of garbage” and said the ceasefire is on “massive life support.”
• Iran ready to retaliate: Tehran said its armed forces are prepared to respond decisively to any “act of aggression.”
• Tehran’s demands: Iran insists on sanctions relief, restoration of oil exports, and recognition of sovereignty over Hormuz.
• Oil stays elevated: Crude prices remain supported by Hormuz supply disruption fears.
• Gold’s double bind: Higher oil prices fan inflation concerns, potentially keeping Fed rates higher for longer — bad news for non-yielding bullion.
• Trump-Xi summit looms: Beijing meeting this week to cover Iran, Taiwan, trade tensions, AI, and energy security.
• CPI in focus: U.S. inflation data due Tuesday could shape the Fed’s policy path.
• Dollar firms: The DXY edged up 0.2%, making gold pricier for foreign buyers.
• Silver firms: Spot silver edged 0.2% higher to $86.31 per ounce.
• Platinum falls: Platinum dropped 1.7% to $2,098.76 per ounce.

Gold prices held steady during Asian trading on Tuesday as investors monitored a fragile ceasefire between the United States and Iran, while also awaiting a pivotal meeting between Donald Trump and Chinese President Xi Jinping later this week.

Spot gold edged down 0.1% to $4,729.18 an ounce by 22:18 ET (02:18 GMT), while U.S. gold futures gained 0.2% to $4,738.00 an ounce.

The yellow metal rose 0.4% on Monday.

Iran Ceasefire on “Massive Life Support”

Trump said that Iran’s response to a U.S.-backed peace proposal was a “piece of garbage” and warned that the ceasefire risked collapsing after weeks of indirect negotiations.

He described the truce as being on “massive life support,” adding to fears of renewed escalation across the Gulf region.

Iran, meanwhile, said its armed forces were prepared to respond decisively to any “act of aggression.”

Iranian officials insisted that Tehran’s demands — including sanctions relief, restoration of oil exports, and recognition of its sovereignty over the Strait of Hormuz — were legitimate.

Oil prices remained elevated on Tuesday on concerns over possible supply disruptions through the Strait of Hormuz, a key artery for global crude shipments.

Higher oil prices have capped gains in bullion, as investors worry that a sustained rise in energy costs could fuel inflation and prompt the Federal Reserve to keep interest rates elevated for longer. Higher interest rates tend to reduce the appeal of non-yielding assets such as gold.

All Eyes on Trump-Xi Summit and CPI Data

Investors were also focused on Trump’s expected meeting with Xi in Beijing later this week, where discussions are expected to include Iran, Taiwan, trade tensions, artificial intelligence, and energy security.

Attention is also turning to upcoming U.S. inflation data, particularly the Consumer Price Index report due later on Tuesday, for clues on the Federal Reserve’s interest-rate path.

The U.S. Dollar Index edged up 0.2% in Asian trading, making gold costlier for buyers using other currencies.

Among other precious metals, spot silver edged 0.2% higher to $86.31 per ounce, while platinum fell 1.7% to $2,098.76 per ounce.