Gold slips near $4,050 as US-Iran deal hopes cool demand

Gold prices eased to near $4,050 per ounce during early Asian trading on Tuesday, pulling back from a recent rally as shifting expectations around US-Iran negotiations reduced demand for the safe-haven metal. The decline came as investors weighed progress toward a potential deal to end the months-long conflict against lingering doubts about whether an agreement would materialize.

Mideast Deal Hopes Weigh on Bullion

The retreat in gold followed remarks over the weekend by President Donald Trump, who said in a social media post on Saturday that Middle Eastern allies had reached the outlines of a deal to end the Iran war. Trump said the emerging agreement "would include the Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran's nuclear threat". He added that he had agreed to cancel planned strikes "subject to being able to rapidly make a DEAL".americanpress

Gold's spot price stood at $4,045.55 per ounce as of Monday morning, according to CNBC, while August gold futures on the Wall Street Journal News Corp ↗ 1.66% traded at $4,049.50, down 1.23% on the session. The metal had benefited from elevated geopolitical risk premiums since the US-Iran conflict escalated earlier this year, and any de-escalation threatens to unwind that positioning.cnbc+1

Asian Markets Eye Mixed Signals

Asian stocks were set for a muted open on Tuesday as investors balanced a rebound in US equities against uncertainty over the durability of any Iran deal. Markets in the region traded mixed on Monday, with the yen jumping against the dollar after the US and Japan confirmed coordinated intervention to support the Japanese currency.wsls

The broader backdrop remains one of caution. The US and Iran agreed to a ceasefire in April mediated by Pakistan, and subsequent negotiations in June saw Iran agree to allow international nuclear inspectors back into the country. But progress has been uneven, and investors remain wary that talks could stall again as they did in mid-2025.wikipedia+2

Outlook Hinges on Negotiations

Experts surveyed in late July forecast gold could trade between $3,900 and $4,350 per ounce in August, depending on geopolitical developments. A confirmed deal to end hostilities and reopen the Strait of Hormuz would likely push gold toward the lower end of that range by removing the risk premium that has supported prices throughout 2026. For now, markets remain in a holding pattern, awaiting concrete steps beyond Trump's social media declarations.cbsnews