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Or sign-in if you have an account.Gold has declined by more than a fifth since the U.S.-Iran war began in late February. Photo by FADEL SENNA/AFP via Getty ImagesGold was little changed as traders monitored diplomatic efforts to cool United States-Iran tensions, potentially pushing energy prices lower and easing pressure on the U.S. Federal Reserve to raise interest rates.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorBullion traded near US$4,050 an ounce, after ending largely unchanged on Monday. After calling off an attack, President Donald Trump said his latest offer of talks was Tehran’s “last chance,” and that he expects a full reopening of the Strait of Hormuz. Tehran denied it was talking with the U.S., but said discussions with Oman to get more ships moving through Hormuz were making progress.Separately, U.S. and Japanese officials signalled they’re determined to keep defending the yen after their first joint intervention in 15 years. Japan is the largest foreign holder of U.S. Treasuries, and any sales to fund its efforts to support the currency would risk pressuring U.S. bonds at a time when inflation concerns and the Iran war are pushing up yields.Gold has declined by more than a fifth since the U.S.-Iran war began in late February, with high energy prices stoking inflationary pressures and raising the likelihood that interest rates will stay higher for longer — a headwind for precious metals. Still, Fed officials opted to keep policy unchanged when they met last week, although there were three dissents in favour of a hike.Fed Bank of New York President John Williams said that interest rates remained well positioned as inflation should ease during the second half, according to an interview with Reuters published on Monday. Still, if inflation did not behave as expected, then the central bank would need to act, Williams added.While waiting for fresh signals from the Middle East, banks have turned attention to the near-term outlook for the gold market. “Re-accelerating central-bank gold demand, led by China, should help gold prices rebound despite likely temporary downside price pressure from energy and rates markets,” Goldman Sachs Group Inc. analysts including Daan Struyven said in a note.Citi Research said gold could stagnate or even decline over the next month before rallying to US$4,500 an ounce in the fourth quarter. “Our base case is for the U.S.-Iran conflict to end and Hormuz flows normalizing and, with this, lower real interest rates and a weaker dollar and stronger investor interest in gold returning,” analysts including Kenny Hu said.Spot gold fell 0.1 per cent to US$4,050.27 an ounce at 10:26 a.m. in London. Silver was up 0.9 per cent at US$58.70 an ounce. Platinum and palladium also rose. The Bloomberg Dollar Spot Index, a gauge of the U.S. currency, was little changed after ending the previous session marginally lower.—With assistance from William Clowes. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.