Gold eases toward $4,050, while silver stays below $59.00 as U.S.-Iran uncertainty and renewed Hormuz tensions fuel market volatility.

Gold slips toward $4,050 as uncertainty surrounds US-Iran talks.

Gold slips toward $4,060 in Monday’s Asian trading session as uncertainty surrounding US-Iran relations weighs on market sentiment. A US official indicated that both countries will “stand down for now,” easing immediate geopolitical concerns. Investors are now turning their attention to the upcoming US Nonfarm Payrolls report on Thursday for further clues on the Federal Reserve’s policy outlook.

Gold prices (XAU/USD) edged lower to around $4,060 during Monday’s Asian session as investors weighed ongoing uncertainty surrounding US-Iran relations and growing expectations that the Federal Reserve could raise interest rates later this year.

According to reports, the United States and Iran have agreed to temporarily halt hostilities and are scheduled to meet in Doha, Qatar, on Tuesday to discuss the dispute over the Strait of Hormuz. US officials indicated that both sides would “stand down for now” after recent military exchanges near the strategically important waterway.

Despite the diplomatic efforts, geopolitical risks remain elevated. Iranian Foreign Minister Abbas Araghchi stressed that responsibility for the Strait of Hormuz rests solely with Tehran, while another Iranian official warned that attempts to bypass Iran’s preferred shipping route could trigger further tensions and escalation. Renewed instability in the Middle East could fuel inflation concerns and strengthen expectations for tighter monetary policy, reducing the appeal of non-yielding assets such as gold.

Meanwhile, market participants are increasingly betting on a Federal Reserve rate hike, with the CME FedWatch Tool indicating nearly a 59.7% probability of an increase as early as September 2026. Investors are now focused on Thursday’s US Nonfarm Payrolls (NFP) report, which is expected to show that 114,000 jobs were added in June while the unemployment rate remained steady at 4.3%. Strong labor market data could reinforce the case for higher interest rates and add further pressure on gold prices.

Silver remains below $59.00 as renewed Strait of Hormuz tensions support safe-haven demand.

Silver (XAG/USD) remains under pressure below $59.00 as renewed US-Iran tensions over the Strait of Hormuz fuel concerns about higher oil prices and rising inflation. However, losses are limited after Washington and Tehran agreed to pause hostilities ahead of peace talks scheduled in Doha later this week. Meanwhile, persistent expectations of a hawkish Federal Reserve continue to weigh on the non-yielding precious metal, keeping silver prices subdued.

Silver (XAG/USD) retreats to around $58.80 during Monday’s Asian session, snapping a two-day winning streak as renewed tensions between the United States and Iran in the Strait of Hormuz boost oil prices and reignite inflation concerns. Market sentiment remains sensitive to developments in the Middle East amid fears that escalating geopolitical risks could disrupt global energy supplies.

Despite the renewed clashes, downside pressure on silver is somewhat limited after Washington and Tehran agreed to suspend attacks ahead of peace talks in Doha this week. The diplomatic breakthrough follows several days of retaliatory strikes triggered by an incident involving a cargo vessel, with both sides accusing each other of breaching the June 17 ceasefire. Officials from the US and Iran are expected to meet in Qatar on Tuesday in an effort to de-escalate tensions.

Meanwhile, silver continues to face headwinds from persistent expectations of tighter US monetary policy. According to the CME FedWatch Tool, markets are pricing in a 59.7% probability of a Federal Reserve rate hike in September 2026. Investors are now focused on this week’s US labor market data, particularly Thursday’s Nonfarm Payrolls report. Economists expect the US economy to add 114,000 jobs in June, while the unemployment rate is projected to remain unchanged at 4.3%. Strong employment figures could reinforce the Fed’s hawkish stance and further weigh on non-yielding assets such as silver.