Gold prices traded sideways on Tuesday as conflicting reports on US-Iran ceasefire negotiations left markets uncertain about the path forward. The precious metal's tight trading range reflects investor caution ahead of key central bank decisions.

Traders are parsing mixed signals from diplomatic channels, with some suggesting progress while others point to lingering tensions. This uncertainty extends beyond geopolitical concerns to shape expectations for monetary policy. Gold's stability comes as investors weigh whether recent inflation pressures will force a shift in rate trajectory.

The metal's muted movement signals that markets are in wait-and-see mode. Central banks face a delicate balancing act between supporting growth and maintaining price stability. Higher-for-longer rate scenarios typically pressure gold, but safe-haven demand often emerges during geopolitical uncertainty.

With gold stuck in consolidation, the focus shifts to upcoming economic data and diplomatic developments. Investors are pricing in cautious optimism while preparing for potential volatility if ceasefire talks break down or accelerate unexpectedly.