Gold prices slipped lower in early trading on Thursday as investors weighed the prospects of a potential U.S.-Iran agreement to wind down hostilities in the region. Spot gold fell 0.1% to $4,493.05 per ounce, reflecting cautious sentiment across precious metals markets as diplomatic developments unfold.

Treasury Secretary Bessent indicated that the U.S. and Iran are nearing a deal, though President Trump has not yet given final approval. The prospect of de-escalation in Middle East tensions has given some investors pause, particularly those holding non-yielding assets amid shifting interest rate expectations.

Zaheer Anwari, co-founder and CEO of The Revacy Fund, notes that rising yields across both U.S. and European markets are creating headwinds for gold. He points to persistent geopolitical uncertainty and a more hawkish rates environment as factors keeping pressure on precious metals, despite the potential for reduced conflict.

With bond yields climbing and equity markets reacting to diplomatic headlines, gold's traditional safe-haven appeal faces competition from higher-yielding alternatives. The metal's performance will likely remain tied to both the progress of U.S.-Iran negotiations and broader monetary policy signals from major central banks.