The gold price remained relatively steady near $4,200 per ounce during the early Asian session on Tuesday, as traders weighed the implications of recent developments in the US-Iran peace deal.

Despite the ongoing negotiations between the two nations, gold prices continued to trade on a flat note, with some analysts attributing this stability to the anticipated hawkish stance of the Federal Reserve.

The Fed’s expected shift towards more aggressive monetary policy has led to increased interest rates and a stronger US dollar, both of which tend to make gold less attractive as an investment option.

Traders are also keeping an eye on the progress of the US-Iran peace deal, with some analysts warning that any breakdown could lead to increased tensions in the region and potentially boost gold prices.

In terms of technical analysis, the 50-day moving average has crossed above the 200-day moving average, which may be a bullish sign for gold prices.

However, some analysts argue that this crossover is not as significant as it initially seems, and that other factors such as global economic growth and central bank policies will likely have a greater impact on the gold price in the long run.

The recent gains in the US stock market also suggest that investors are becoming more optimistic about the economy, which could potentially weigh on gold prices.

Looking ahead to the rest of the week, traders will be keeping a close eye on the Fed’s interest rate decision and any further updates on the US-Iran peace deal.

In terms of sector performance, gold stocks have been among the worst performers in recent days, as investors increasingly bet against a gold rally.

On the other hand, some analysts see the recent price stability in gold as an opportunity for investors to buy into the market and prepare for potential upside.

The 2023 budget proposals also suggest that the US government is preparing for a potential decline in gold prices, which could be a negative catalyst for the metal.