Spot gold edged up 0.1% to $4,313.35 by 21:54 ET (01:54 GMT), while U.S. gold futures slipped 0.4% to $4,333.90. The moves followed a more than 2% jump in bullion on Monday after Washington and Tehran announced a framework deal to end their conflict and reopen the Strait of Hormuz.<\/p>\n
The preliminary peace framework between the United States and Iran, expected to be formally signed later this week, has contributed to a sharp decline in oil prices and an improvement in global risk sentiment. Brent crude fell to three-month lows on Monday, while global equities advanced on expectations that lower energy costs could ease inflationary pressures.<\/p>\n
The announcement of the agreement, which aims to end the conflict and reopen the key shipping route through the Strait of Hormuz, helped lift gold on Monday by more than 2%, while also pressuring the U.S. dollar. Markets are now focused on the timing and practical implementation of the deal, as both countries indicated that a permanent truce has yet to be negotiated.<\/p>\n
Investor attention is turning to a series of central bank policy decisions this week. The Bank of Japan is widely expected to raise interest rates to a 31-year high at its Tuesday meeting. Later in the week, the U.S. Federal Reserve and the Bank of England are scheduled to announce their own policy decisions.<\/p>\n
Markets anticipate that the Federal Reserve will leave interest rates unchanged at its June 16\u201317 meeting. Traders will closely follow comments from Fed Chair Kevin Warsh for indications on the future path of U.S. interest rates. Higher borrowing costs typically weigh on non-yielding assets such as gold by increasing the opportunity cost of holding the metal, and recent U.S. inflation data and ongoing concerns over price pressures have led investors to scale back expectations for rate cuts this year.<\/p>\n
Among other precious metals, silver prices eased 0.8% to $69.41 per ounce, while platinum declined 1% to $1,755.60 per ounce.<\/p>\n
What are current gold prices in Asian trade?<\/strong> How did the U.S.-Iran agreement affect markets?<\/strong> What is expected from the upcoming central bank meetings?<\/strong> How are other precious metals performing?<\/strong>
Spot gold is trading at $4,313.35, up 0.1%, while U.S. gold futures are at $4,333.90, down 0.4%.<\/p>\n
The preliminary peace framework to end the conflict and reopen the Strait of Hormuz led to a more than 2% rise in gold on Monday, a sharp decline in oil prices, and improved risk sentiment, with global equities rallying on expectations of lower inflationary pressures.<\/p>\n
The Bank of Japan is widely expected to raise interest rates to a 31-year high, while investors expect the Federal Reserve to keep rates unchanged at its June 16\u201317 meeting. The Bank of England is also due to announce its policy decision later this week.<\/p>\n
Silver prices have fallen 0.8% to $69.41 per ounce, and platinum is down 1% at $1,755.60 per ounce.<\/p>\n