Gold prices dipped modestly in Asian trade on Tuesday as traders weighed conflicting indications about whether the U.S. and Iran will pursue further negotiations ahead of a ceasefire that is due to expire later this week. Attention was also turning to a Senate confirmation hearing scheduled for President Donald Trump’s nominee for Federal Reserve Chair, Kevin Warsh.
Spot gold was down 0.3% at $4,807.75 an ounce, while gold futures were steady at $4,827.39/oz as of 22:18 ET (02:18 GMT). The market remained confined to the same narrow band it has traded in for more than two weeks, with spot prices oscillating inside a $4,700-$4,900/oz range.
The yellow metal has underperformed since the onset of the U.S.-Israel war on Iran, with any traditional safe-haven demand largely counterbalanced by investor concern over the conflict's potential inflationary effects. That dynamic left bullion struggling to regain record highs it reached earlier in the year.
Diplomatic developments were mixed. President Trump confirmed that a delegation led by Vice President JD Vance will travel to Pakistan this week for additional discussions. Iranian officials, however, signaled that talks were unlikely to proceed while the U.S. maintained a naval blockade. At the same time, reports indicated Tehran had confirmed to regional mediators that it intended to send a delegation to Islamabad. The situation left the future of the conflict uncertain, with a tenuous ceasefire between the U.S. and Iran scheduled to lapse this Wednesday and Trump suggesting an extension was unlikely.
Markets were also on edge following a weekend incident in which U.S. forces fired on and captured an Iran-flagged vessel, heightening concerns about potential further military action in the region.
Beyond geopolitics, policy risk centered on Warsh's confirmation hearing, set to begin at 10:00 ET (14:00 GMT). Lawmakers and market participants are expected to focus on whether he would act independently of President Trump, who has repeatedly pressured for lower interest rates. Though Warsh has voiced support for calls to reduce rates, his record includes past criticism of the Fed's asset purchases and advocacy for a leaner central bank balance sheet. Markets had reacted sharply when his nomination was announced in late January, triggering significant losses in gold and other precious metals and pulling bullion down from record levels it has since struggled to reclaim.
Other precious metals tracked gold's retreat on Tuesday. Spot silver fell 0.6% to $79.2765/oz, while spot platinum declined 0.7% to $2,078.06/oz.
The combination of unclear diplomatic signals and looming central bank leadership decisions kept bullion trading within its recent range, with investors balancing potential safe-haven flows against inflation and policy considerations.