Gold prices remained relatively stable, trading within the same range as seen over several weeks, as the metal contends with rapidly changing conditions in the Middle East and shifting monetary policy expectations.
Gold found some support from a global pullback in bond yields tied to easing geopolitical concerns and a decline in oil prices.
However, the dollar held broadly steady, capping the metal’s upside.
Bond yields came under pressure as oil prices declined after US President Donald Trump said talks with Iran will resume today and that he had held back from further escalation in hopes of quickly resolving diplomatic issues.
Progress on this front could push oil prices further down, limit inflation concerns and drive bond yields lower, reducing pressure on gold.
Markets will also weigh this week’s labour data, including nonfarm payrolls, JOLTS and jobless claims, for their impact on monetary policy expectations. In the long term, while gold benefited from ongoing central bank purchases, actual purchases came in lower than expected, which could weigh on the asset if demand softens.
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