FX.co ★ Gold Steady as Iran Talks Ease Inflation Concerns

Gold hovered near $4,200 an ounce on Tuesday, holding on to gains from the previous session as early signs of progress in peace talks between the US and Iran helped ease inflation concerns. In a key development, Washington granted Iran a 60-day license to sell oil on international markets, boosting expectations of a quicker recovery in global supply. Shipping activity through the Strait of Hormuz has also picked up, with producers such as Kuwait and the United Arab Emirates finding alternative export routes for energy, while Iran shipped more than 30 million barrels over the past week. Gold has faced persistent pressure since the Middle East conflict flared in late February, as disruptions to energy flows through Hormuz pushed oil prices higher and strengthened expectations that central banks would raise interest rates to contain inflation.