Gold slipped below $4,550 per ounce on Tuesday, extending recent losses as easing geopolitical tensions and shifting interest rate expectations weighed on sentiment.
Spot gold traded around $4,543–$4,552 per ounce, marking a decline of about 0.5% in the session, and continuing a broader pullback after a recent multi-session rally.
The decline followed comments from U.S. President Donald Trump suggesting that a planned military strike on Iran had been paused after appeals from Gulf allies, including Saudi Arabia, Qatar and the United Arab Emirates. The remarks raised cautious hopes of renewed diplomatic engagement, easing some of the safe-haven demand that had recently supported gold.
Despite that, markets remain sceptical that a durable breakthrough is imminent, with investors still closely watching developments around the Middle East conflict and Iran’s nuclear programme.
Gold has also come under pressure from macroeconomic factors, as stronger U.S. inflation readings have reinforced expectations that the Federal Reserve will keep interest rates higher for longer. Traders have further scaled back expectations for rate cuts this year, with some speculation that additional tightening could still be possible before year-end.
Higher yields and a firmer U.S. dollar have added to the pressure on non-yielding assets such as gold, limiting its ability to sustain gains despite ongoing geopolitical uncertainty.
Investors are now focused on upcoming Federal Open Market Committee (FOMC) minutes and flash U.S. PMI data for clearer signals on the economic outlook and future policy direction.
Despite short-term weakness, analysts say gold remains supported by underlying geopolitical risks, even as monetary policy expectations continue to dominate price direction in the near term.
