FX.co ★ Gold Rises as US-Iran Talks Eyed

Gold rose above $4,050 an ounce on Tuesday, rebounding from recent losses as investors weighed the possible resumption of peace talks between the US and Iran. Such negotiations could help ease energy-driven inflation pressures and temper expectations for further interest rate hikes. Mediators worked on Monday to move both sides toward a new ceasefire, with reports suggesting a potential 10-day truce. Tensions nonetheless remained high after President Donald Trump warned that Iran would be held responsible for the deaths of three US service members. Adding to market jitters, Iran-backed Houthi militants declared a maritime embargo against Saudi Arabia, stoking concerns over energy shipments through the Red Sea. Meanwhile, US Treasury yields climbed sharply this week, with markets now assigning about a 55% probability to a Federal Reserve rate hike in September, up from 51% the previous day.