Gold Rises as Mixed Signals on US-Iran Talks Ease Oil-Driven Inflation Fears

Gold edged up on Tuesday as conflicting US and Iranian statements about diplomatic progress in the Middle East war eased crude prices, reducing immediate inflation concerns. Spot gold rose 0.8% to $4,520.83 an ounce by early afternoon in Singapore, recovering from the prior session's decline. The move came after oil slipped from its biggest jump in a month, as US President Donald Trump said talks with Iran continued "at a rapid pace," countering earlier Iranian threats to suspend diplomacy and close the Strait of Hormuz. The confusion around negotiations, now in their fourth month, has driven sharp moves in energy markets since the conflict began in late February. "Gold continues to dance to the tune of oil given the link to inflation and with that, movements in rates, yields and the dollar," said Ole Hansen, head of commodity strategy at Saxo Bank. The metal has moved inversely with oil during the crisis, remaining about 14% below its pre-war level. Silver gained 2.2% to $76.51 an ounce, while the Bloomberg Dollar Spot Index slipped 0.1%.