Gold Little Changed As Focus Shifts To US Labor Market Data

(RTTNews) - Gold prices were largely unchanged on Tuesday as the U.S.-Iran conflict remained at a stalemate and investors looked forward to the release of a series of U.S. labor market reports this week that might provide fresh insights into the economic and rate outlook.

Spot gold slipped 0.1 percent to $4,047.23 an ounce while U.S. gold futures were up 0.3 percent at $4,103.07.

Investors were reacting to mixed messages regarding U.S.-Iran peace negotiations. U.S. President stated that negotiations with Iran are already underway and they have been given a "last chance" to reach an agreement.

Trump outlined a two-stage roadmap for any potential agreement. "The first phase is the opening of the straits. The second phase will be the denuclearization," Trump said.

However, Tehran denied holding direct talks with Washinton and emphasized that the ongoing talks are only between Iran and Oman to ensure safe navigation through the Strait of Hormuz, a vital global oil shipping route.

Meanwhile, a cargo vessel was struck by an unknown projectile near AI Khasab, Oman, heightening regional tensions and raising fresh concerns over potential supply disruptions.

In economic releases, traders await JOLTS job opening, ADP employment, ISM Services PMI and the nonfarm payrolls report this week for additional clues on the Fed's rate trajectory.

The U.S. dollar index was pinned near a two-month low while the yield on the U.S. 10-year Treasury bond edged up slightly to 4.684 percent on bets the Federal Reserve may deliver a quarter-point rate hike in September.

Federal Reserve Bank of New York President John Willams said he expects inflation to fall in the second half of 2026, but the Fed will act if it stays above its 2 percent target.

The Japanese yen held on to most of its intervention-driven gains after U.S. Treasury Secretary Scott Bessent publicly called on the Federal Reserve to expand its FIMA Repo Facility to help Japan avoid directly selling U.S. Treasuries when supporting the Japanese currency, reigniting concerns about Fed independence.