Gold Steadies as Traders Weigh US-Iran Efforts to End Attacks

Gold steadied on Monday after a report that Iran had ended military operations against Israel, potentially removing a major obstacle to efforts to end the wider Middle East conflict. Bullion was little changed at around $4,320 an ounce, after falling as much as 1.4% earlier in the session. The metal gave up nearly 5% last week during the worst flare-up in regional tensions in decades. This price action reflects the metal's dual sensitivity to geopolitical risk and macroeconomic drivers, with the spot market adjusting as the immediate safe-haven premium erodes.

For gold and precious metals traders, the easing of geopolitical tensions reduces the immediate safe-haven bid that had driven prices to record highs. However, the underlying macro environment remains supportive: central bank gold buying has been robust since 2022, with institutions in China, India, and Turkey adding hundreds of tonnes to reserves as part of a de-dollarization trend. Real US 10-year yields are still deeply negative, which historically has been bullish for gold by lowering the opportunity cost of holding non-yielding assets. The COMEX-LBMA spread has narrowed, signaling reduced delivery stress, while ETF flows into GLD and IAU remain steady, indicating persistent investment demand. Jewelry demand in Asia, particularly India and China, has softened at these elevated price levels, but central bank purchases have more than compensated. The DXY inverse correlation remains intact; a weaker dollar would provide additional support. For the latest gold prices, traders can check NowPrice's real-time quotes.

Looking ahead, market participants will focus on any further developments in US-Iran talks and the broader Middle East situation. Additionally, upcoming US economic data, including inflation readings and Federal Reserve commentary, will be key in determining the next direction for gold. A sustained de-escalation could lead to further profit-taking, while any renewed tensions would likely reignite safe-haven flows. Traders should also monitor weekly COMEX positioning and LBMA clearing volumes for signs of speculative shifts, as well as any changes in central bank buying patterns that could underpin prices.