Gold traded in a narrow range as market participants awaited developments from Middle East negotiations that could influence Federal Reserve monetary policy decisions.

The precious metal remained relatively unchanged as traders balanced competing factors including ongoing geopolitical tensions and evolving expectations around US interest rate movements. Market sentiment reflected uncertainty as investors weighed the potential outcomes of diplomatic efforts against broader economic considerations.

Analysts noted that any breakthrough in regional talks might reduce safe-haven demand for gold while simultaneously easing inflationary pressures that have supported arguments for continued rate hikes. The Fed's policy trajectory remains a key determinant for gold pricing as the metal typically underperforms during periods of rising interest rates.

Market volumes stayed subdued as participants maintained cautious positioning ahead of key economic data releases and central bank communications that could reshape rate expectations.