Gold prices were largely steady on Tuesday, as markets weighed the developments in the West Asia conflict and interest rate expectations ahead of key US inflation data.

Spot gold fell 0.1 per cent to $4,728.79 per ounce by 04:18 GMT, after climbing to a three-week high earlier in the session.

US gold futures for June delivery gained 0.2 per cent to $4,737.60. Hopes for a peace deal on Iran faded after US President Donald Trump said a ceasefire with Iran was “on life support” as Tehran rejected a US proposal to end the conflict and stuck to a list of demands the US president described as “garbage”.

“We’ve already seen expectations for a lot of central banks shift in a much more hawkish direction, and for the Federal Reserve, it’s meant a dropping of all rate cut possibilities for this year,” said Ilya Spivak, head of global macro at Tastylive.

“We’re really looking to what the CPI (Consumer Price Index) numbers might give, and if there is a stronger inflationary impetus there than already expected.”

The data is expected later in the day and could give investors clues into the Fed’s future monetary policy path.

Meanwhile, oil prices rose nearly 1 per cent, while the dollar extended gains from the previous session.

Elevated crude oil prices can stoke inflation, increasing the likelihood of higher interest rates. While gold is seen as a hedge against inflation, high rates tend to weigh on the non-yielding asset. BofA Global Research and Goldman Sachs scaled back expectations of US interest rate cuts this year, citing elevated inflation due to high energy prices and growing strength in the labour market. Markets are also watching Trump’s two-day visit to China this week, during which he is set to meet Chinese President Xi Jinping to discuss a wide variety of topics, including West Asia.

Spot silver rose 0.4 per cent to $86.39 per ounce, platinum slid 1.4 per cent to $2,101.60, and palladium was down 0.6 per cent at $1,500.20.

Published on May 12, 2026