Gold steadied near $4,100 an ounce on Tuesday, retaining most of the previous session’s gains after President Donald Trump said the US was engaged in "good talks" with Iran to end the Middle East conflict, sending oil prices lower and easing concerns over inflation and interest rate hikes.
However, Trump also warned that the US is ready to resume strikes against the Islamic Republic if negotiations break down.
The US suspended its attacks on Iran late Friday following nearly two weeks of hostilities, while Tehran also halted retaliatory strikes against US bases in neighboring countries.
Investors are also awaiting the Federal Reserve’s policy decision this week, with policymakers widely expected to leave interest rates unchanged.
While some traders continue to speculate about a possible rate hike this week amid renewed inflationary pressures, most expect the next increase to come in September.