Gold steadies near $4,328 as Iran hopes meet a hawkish Fed

What happened

Gold traded around $4,328 on Tuesday after recovering from an intraday low of $4,291 during European trading. Traders weighed fresh signs of diplomacy between the United States and Iran against expectations that the Federal Reserve keeps policy tight after last week's rate hike.

Why it matters

Gold is being pulled two ways. Geopolitical risk supports it as a safe haven, so real progress toward de-escalation can take some of that premium out of the price. At the same time, higher US interest rates raise the cost of holding a metal that pays no yield, and tend to strengthen the dollar gold is priced in. When both forces move at once, gold often trades sideways until one of them clearly wins.

What to watch

Further headlines on US-Iran talks and shipping through the Strait of Hormuz, comments from Fed officials this week, and the September US inflation figures, which will shape how far the Fed is expected to go.