(RTTNews) – Gold prices held steady on Tuesday as a halt in hostilities between Israel and Iran boosted hopes that peace negotiations could move forward.
Spot gold was little changed at $4,329.44 an ounce after touching a two-month trough at $4,268.39 on Monday. U.S. gold futures were down 0.3 percent at $4,352.51 an ounce.
Geopolitical tensions eased somewhat as Israel and Iran agreed to halt attacks against each other following a series of mutual attacks from Sunday night, which marked the most serious escalation since the ceasefire in April.
U.S. President Donald Trump said that he had warned Israeli Prime Minister Benjamin Netanyahu that if Israel resumed its war with Iran, it could find itself fighting alone.
Trump also said that the final negotiations on a peace deal aimed at achieving a complete solution to the West Asia conflict are currently underway but “ignorance of stupidity” could derail efforts to reach a final agreement.
Meanwhile, as inflation concerns mount, the European Central Bank (ECB) is widely expected to raise its three key interest rates by 25 basis points when it meets on Thursday. Analysts see the key rate at 2.5 percent or 2.75 percent by year-end.
Across the Atlantic, the June 16-17 FOMC meeting will be Kevin Warsh’s first as chair. The U.S. central bank is not expected to move rates in this meeting, with investors likely to watch his tone and communication for early signals on the likely path of rates going forward.
U.S. inflation data is due later this week, with the headline inflation rate seen at 4.2 percent year-on-year in May, marking the highest reading in more than three years.
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