By: Economy Middle East

Gold edged higher on Tuesday, supported by lower Treasury yields and a partial ceasefire between Hezbollah and Israel, while investors awaited details on the status of U.S.-Iran peace talks amid conflicting reports.

Spot gold rose 0.92 percent to $4,518.11 per ounce, while U.S. gold futures for August delivery gained 0.94 percent to $4,548.80. The yield on the benchmark 10-year U.S. Treasury note ticked lower during trading, effectively reducing the opportunity cost of holding non-yielding bullion assets.

Consistent with global market trends, retail gold prices in the UAE experienced an increase. The domestic rates for different carats were recorded as follows: 24-carat gold rose by AED3.75 to reach AED543.50, whereas 22-carat and 21-carat gold gained AED3.25 to stand at AED503.25 and AED482.50, respectively. Meanwhile, 18-carat gold advanced by AED2.75 to AED413.50, and 14-carat gold climbed AED2.00 to AED322.50.

Geopolitical updates and ceasefire monitoring

Lebanon announced a partial ceasefire between Hezbollah and Israel on Monday, offering a limited de-escalation of a conflict that has impacted thousands of lives and inflamed the broader war with Iran. Market participants continue to balance this development against conflicting diplomatic signals. Earlier, Iranian state media reported that Tehran was halting indirect negotiations with the U.S. and might end its separate ceasefire, whereas U.S. President Donald Trump stated that talks with Iran were ongoing “at a rapid pace.”

Macroeconomic indicators and monetary policy focus

Investors are now awaiting the U.S. nonfarm payrolls and employment reports, both due later in the week, to assess overall resilience in the labor market amid mounting concerns about inflation driven by the Middle East conflict.

Also in focus are upcoming remarks from Federal Reserve policymakers, including Cleveland Fed President Beth Hammack and Fed Governor Michael Barr, as analysts look to gauge the future monetary policy path.

In alternative precious metals markets, performance was generally positive: spot silver rose 1.21 percent to $75.89 per ounce, platinum gained 1.42 percent to $1,959.90, and palladium inched 0.67 percent higher to $1,356.00.