Gold prices steady as softer dollar offsets Iran peace developments

U.S. gold futures for June delivery slipped modestly to 4,720.Dollar weakness cushions goldThe marginal pullback in the dollar helped limit downside pressure on bullion. Sentiment was shaped by reports suggesting that Iran, via Pakistani intermediaries, presented a proposal to the United States aimed at reopening the Strait of Hormuz and bringing an end to the ongoing conflict.Market participants see geopolitical progress — or the lack of it — as a critical short‑term driver for gold, traditionally viewed as a safe‑haven asset during periods of uncertainty.Geopolitical signals remain mixedS. President Donald Trump said Iran could initiate direct contact if it wished to negotiate an end to the two‑month conflict, while reiterating that Tehran must not obtain nuclear weapons. However, optimism was tempered after Washington cancelled a planned visit by U.S. envoys to Pakistan, a key intermediary in the peace process.The mixed diplomatic messages have kept investors cautious, preventing strong directional moves in gold prices.Oil prices and inflation concernsMeanwhile, oil prices moved higher, reflecting concerns that prolonged tensions could continue to disrupt Middle Eastern energy exports. Rising crude prices tend to feed into inflation by increasing transportation and production costs.While gold is often used as an inflation hedge, sustained inflation can also keep interest rates higher for longer, reducing the appeal of non‑yielding assets like bullion.Federal Reserve decision in focusAttention now turns to the U.S. Federal Reserve’s interest rate decision on Wednesday, which could prove decisive for gold’s near‑term direction.Analysts note that any indication the Fed plans to maintain restrictive policy due to energy‑driven inflation could weigh on gold, while a more cautious or balanced outlook may offer support.Other precious metalsSilver edged lower to about 75.44 per ouncePlatinum rose slightly to near 2,013Palladium fell to around 1,487