Gold steady as investors focus on US-Iran peace talks

Gold prices were steady on Tuesday as investors assessed U.S.-Iran peace talks, while rising expectations of a Federal Reserve interest rate hike in December weighed on the metal. Spot gold was steady at $4,191.09 per ounce in early Asian trading, while U.S. gold futures for August delivery rose 0.2% to $4,208.40. The United States waived sanctions on Iran for 60 days from Monday following the first talks under a nascent peace deal. Officials reported a sustained lull in fighting in Lebanon under the agreement, which aims to end hostilities across the region. U.S. Vice President JD Vance said talks with Iranian officials in Switzerland had laid a good foundation for a final peace deal, although Iran denied that discussions of its nuclear programme had begun. On the monetary policy front, Fed Chairman Kevin Warsh will deliver his first congressional testimony on July 14, according to a hearing notice published by the House Financial Services Committee. Chicago Fed President Austan Goolsbee said that with the labour market stable, his focus is on whether elevated inflation will persist or recede as the effects of high tariffs fade and Middle East tensions ease. Traders now price in an 89% chance of an interest rate hike in December, up sharply from 61% before last week's Fed meeting, according to the CME FedWatch Tool. Gold speculators raised net long positions by 9,258 contracts to 112,918 in the week to June 16. Among other precious metals, spot silver fell 0.4% to $64.92 per ounce and platinum lost 0.4% to $1,672.90, while palladium edged up 0.1% to $1,266.35.