Gold Holds Near $4,000 as Traders Watch US-Iran Talks, Fed Rate Path

Gold traded in a narrow range as investors watched US-Iran peace talks and fresh US economic data.

Spot gold traded near $4,000 an ounce on July 30, according to Bloomberg. The metal steadied after dropping about 2% over the previous two sessions.

Envoys for President Donald Trump traveled to Doha, Qatar, for talks with Iran. But Qatar, which is mediating the negotiations, said no direct meeting between the two sides is scheduled, damping prospects for a major breakthrough in the near term.

Ahead of the talks, Iran reaffirmed that it would continue controlling vessel traffic through the Strait of Hormuz. The waterway is a key shipping route for roughly 20% of global crude oil and liquefied natural gas flows.

Gold has fallen about 24% since the Middle East conflict began in late February and has slipped below its 200-day moving average, a longer-term trend indicator. With oil prices stabilizing after an early wartime surge, the prospect of additional Federal Reserve rate hikes has weighed on bullion.

The US economy, however, has remained resilient. May job openings were little changed, and the labor market also showed stability. That has given the Fed room to keep interest rates on hold for now while monitoring inflation.

As of 7:55 a.m. in Singapore, spot gold was at $4,006.73 an ounce. Silver fell 0.2%, platinum was little changed, and palladium edged lower. The Bloomberg Dollar Spot Index rose 0.1%.