Gold prices remained under pressure Tuesday as market participants parsed mixed messages between Washington and Tehran ahead of renewed negotiations to halt hostilities. The precious metal's inability to rally despite geopolitical uncertainty signals shifting investor sentiment toward risk assets.

Traders are weighing whether upcoming diplomatic talks will de-escalate tensions that have driven commodity markets higher throughout the year. The conflict's impact on energy supplies and shipping routes has kept inflation expectations elevated, typically supporting gold as an inflation hedge.

However, the metal's muted response suggests investors may be pricing in a potential resolution. Recent comments from both sides about de-escalation have created uncertainty about whether the geopolitical risk premium will persist. Market positioning shows reduced safe-haven demand compared to earlier phases of the conflict.

With fresh talks on the horizon, gold's performance will likely hinge on whether diplomatic progress materializes. The lack of significant safe-haven flows indicates traders are taking a wait-and-see approach rather than building defensive positions.