Gold prices fell slightly in Asian trade on Tuesday as markets remained uncertain over whether the U.S. and Iran will engage in more peace talks before their ceasefire ends later this week.
Focus was also on a Senate confirmation hearing for U.S. President Donald Trump’s nominee for Federal Reserve Chair Kevin Warsh, which is set to take place later in the day.
Spot gold fell 0.6% to $4,790.05 an ounce, while gold futures fell 0.4% to $4,808.29/oz by 01:15 ET (05:15 GMT).
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Among other precious metals, spot silver fell 0.8% to $79.0845/oz, while spot platinum fell 0.3% to $2,085.07/oz.
Iran talks in focus as ceasefire deadline looms Gold remained squarely in a tight trading band seen for over two weeks, as spot prices struggled to break out of a $4,700-$4,900/oz range. The yellow metal has underperformed since the onset of the U.S.-Israel war on Iran, as haven demand was largely overshadowed by concerns over the war’s inflationary impact.
The future of the war remained largely uncertain, amid conflicting signals on whether more U.S.-Iran peace talks will take place. Trump confirmed that a delegation led by Vice President JD Vance will travel to Pakistan for more talks this week.
Iranian officials said talks appeared unlikely as long as the U.S. maintained its naval blockade of the country. But reports showed that Tehran had confirmed to regional mediators that it was sending a delegation to Islamabad.
A tenuous ceasefire between the U.S. and Iran is set to expire this Wednesday, with Trump signaling that an extension in the deal appeared unlikely. Markets were also on edge over more military action in the Middle East after the U.S. fired on and captured an Iran-flagged vessel over the weekend.
Warsh set for Senate confirmation hearing Beyond the Iran war, focus this week will also be on Warsh’s confirmation hearing after his nomination as Fed Chair. His independence from Trump– who has constantly demanded lower interest rates– will be a key point of focus.
Warsh will testify before the Senate Banking Committee at 10:00 ET (14:00 GMT).
Warsh’s nomination was viewed as less dovish than markets were expecting. While he has expressed support for Trump’s calls for lower rates, he has in the past criticized the Fed’s asset buying activities, and has called for a leaner balance sheet.
Gold and other precious metals had plummeted from record highs following Warsh’s nomination in late-January.
In prepared remarks for the hearing, Warsh emphasized on the Fed’s independence from political influence, but also noted that the bank should remain focused on its primary goals.
His confirmation as Fed Chair is likely to be delayed even as incumbent Chair Jerome Powell’s term ends on May 15. Several top lawmakers have called for Powell to stay on until the Trump administration drops an investigation into Powell and the Fed over allegations of corruption in a renovation project.
