Gold Holds Near $4,000 as Traders Track US-Iran Talks, Economic Data

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

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 visited Doha, Qatar, for talks with Iran. Qatar, which is mediating the discussions, said no direct talks between the two sides were scheduled and downplayed the chances of a major breakthrough in the near term.

Before the negotiations, Iran reaffirmed that it would continue controlling shipping through the Strait of Hormuz. The waterway is a crucial maritime route that carries about 20% of global crude oil and liquefied natural gas shipments.

Gold has fallen about 24% since the Middle East conflict began in late February and has broken below its 200-day moving average, a long-term trend indicator. Oil prices have stabilized after surging at the start of the war, adding pressure to gold as the prospect of additional Federal Reserve interest-rate increases returned to focus.

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

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