Gold Steady as US-Iran Peace Talks Advance

Trump stated that a deal with Iran is "very close," with Iran agreeing not to possess nuclear weapons for over 20 years in exchange for the removal of international sanctions. This progress led to crude oil prices retreating below $100 a barrel, though still significantly above pre-conflict levels, thereby easing global inflationary pressure expectations.

Initially, gold underperformed due to anticipated central bank interest rate hikes in response to oil-driven inflation and a strengthening U.S. dollar. However, the dollar has since weakened, declining over 0.5% on Friday, making gold less expensive for overseas buyers.

Michael Brown, Senior Research Strategist at Pepperstone, noted that markets currently lack obvious catalysts, contributing to range-bound conditions across foreign exchange, fixed income, and metals.