Gold holds steady above $4,800 amid US-Iran ceasefire uncertainty
Gold price flat lines around $4,825 in Tuesday’s early Asian session.
Traders will closely monitor the Middle East developments as the US-Iran ceasefire expiry looms.
The US March Retail Sales data will be published later on Tuesday.
Gold price (XAU/USD) trades on a flat note near $4,825 during the early Asian session on Tuesday. The precious metal steadies amid renewed geopolitical instability in the Middle East.
Reuters reported on Monday that Iran is considering attending peace talks with the United States (US) in Pakistan, following moves by Islamabad to end a US blockade of Iran's ports. Nonetheless, officials stressed that no decision had been made, and Iranian Foreign Minister Abbas Araqchi said that "continued violations of the ceasefire" by the US are a major obstacle to continuing the diplomatic process.
A breakdown in US-Iran peace talks and a renewed blockade of the Strait of Hormuz have driven oil prices higher. Rising energy costs are stoking inflation fears, raising the bar for cutting rates. Gold is often used amid geopolitical uncertainty, but it does not yield interest, making it less attractive when interest rates are high.
The US Retail Sales report will be the highlight later on Tuesday. Retail Sales is projected to show a rise of 1.4% MoM in March, compared to 0.6% in February. However, if the report shows softer-than-expected inflation in the US, this could weigh on the US Dollar (USD) and support the USD-denominated commodity price.
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