Gold rises in Asian trade after an interim peace between the U.S. and Iran eased inflation worries, ANZ Research notes. Spot gold was up 0.1% at $4,310.11. The climb follows Monday's gains and reflects a broader shift toward risk‑on assets as diplomatic tension recedes. Analysts see the move as a tentative test of whether safe‑haven demand will hold if inflation pressures continue to subside.

Improved risk sentiment has tempered expectations for additional rate hikes, a shift that could be confirmed by this week’s central‑bank calendar. Markets are eyeing decisions from the Federal Reserve and the Bank of England, with the Fed slated to hold its first policy meeting under new chair Kevin Warsh. A softer monetary outlook would reinforce gold’s appeal.

The modest 0.1% rise underscores how quickly gold reacts to geopolitical de‑escalation and shifting inflation expectations. While the price uptick is limited, it signals that investors may tilt toward precious metals ahead of policy meetings. For now, gold remains a barometer of short‑term sentiment rather than the start of a sustained bull market. Any reversal could quickly erase gains. investors should watch upcoming data.