Gold hovered around $3,950 per ounce on Tuesday, following a nearly 2% gain in the previous session and rebounding from one-year lows. The recovery came as oil prices fell on signs of diplomatic progress between the United States and Iran, easing some inflation concerns.
US President Donald Trump signaled advances in negotiations, while Iranian President Masoud Pezeshkian stated that his government had been granted broader authority by the country’s supreme leader to pursue peace talks.
Throughout the year, gold has been under persistent pressure as conflict in the Middle East pushed energy prices higher, stoking inflation and prompting central banks to raise interest rates. A global selloff in technology and AI stocks further exacerbated the situation, triggering broad-based liquidations that weighed on precious metals.
At the same time, investors are closely monitoring the US midterm elections, with the Trump administration and the Republican Party facing mounting political pressure over elevated energy costs.
