Gold steady as investors wait for news of US-Iran peace pact

Gold prices were little changed on Tuesday after hitting a more than one-week high in the previous session, as investors anticipated further details on the U.S.-Iran peace pact.

Spot gold rose 0.2% to $4,315.87 per ounce by 0231 GMT, after climbing as much as 3.6% on Monday to its highest since June 5.

U.S. gold for August delivery declined 0.3% to $4,337.10.

The U.S. and Iran have signed a preliminary deal to halt the war in the Gulf, President Donald Trump ⁠said Monday, with specifics yet not made public and both sides saying a permanent truce is not yet negotiated. “We’ve got a nice run in gold prices since late Thursday on the Iran news. “This euphoria rally could last for a few more days and climax with the signing ceremony on Friday,” said Edward Meir, an analyst at Marex.

The U.S. dollar hovered near 10-day lows ahead of the Bank of Japan’s interest rate decision.

Investors are also looking to Wednesday’s Federal Reserve policy decision and comments, the first under Chair Kevin Warsh, with rates widely expected to remain unchanged.Markets are not pricing any rate cuts this year. “If Warsh hints that at least one cut could be coming later this year, the dollar should weaken further and we could see another rally in gold,” Meir added.However, if he sounds more hawkish on rates, gold could come under some pressure.”

Gold is an inelastic asset and tends to lose its attraction in a higher interest rate environment.

Meanwhile, Citi boosted its 0-3 month gold price projection to $4,500 per ounce from $500.

Spot silver was down 1% at $69.29 an ounce, platinum down 0.9% to $1,751.55 and palladium was 1.6% lower at $1,327.27.