Gold prices inched lower on Wednesday as prospects of another round of peace talks between the United States and Iran lifted risk appetite.<\/p>\n
Brendon Thorne | Bloomberg | Getty Images<\/p>\n
Gold\u00a0prices inched lower on Wednesday after hitting a one-month high earlier in the session, as the dollar regained some ground and prospects of another round of peace talks between the United States and Iran lifted risk appetite.<\/p>\n
Spot\u00a0gold<\/a>\u00a0was down 0.3% at $4,828.07 per ounce, as of 0249 GMT, after hitting its highest since March 18 earlier. U.S.\u00a0gold\u00a0futures<\/a>\u00a0for June delivery were steady at $4,851.30.<\/p>\n The U.S. dollar rebounded from its lowest level in more than a month, making the greenback-denominated commodities, such as bullion, more expensive for holders of other currencies.<\/p>\n Oil prices fell while stocks surged on hopes that Iran will resume talks with the U.S. to end the conflict that has shut the Strait of Hormuz, one of the world’s major waterways for transporting crude and refined products.<\/p>\n Gold\u00a0prices are reacting to the Middle East headlines in the short term with hopes that the two countries will engage in talks, said Marex analyst Edward Meir.<\/p>\n Despite a slight pullback,\u00a0gold\u00a0prices are up 1.6% this week on renewed hopes of U.S.-Iran peace talks.<\/p>\n “If things fall apart again, we can revert to the pre-ceasefire pattern of lower\u00a0gold, a stronger dollar and lower equity prices,” said Meir.<\/p>\n Talks to end the Iran war could\u00a0resume\u00a0in Pakistan over the next two days, U.S. President Donald Trump said on Tuesday, after the collapse of weekend negotiations prompted Washington to impose a blockade on Iranian ports.<\/p>\n Adding to the uncertainty, the U.S. military said late on Tuesday that American forces have completely\u00a0halted\u00a0economic trade going into and out of Iran by sea through a blockade.<\/p>\n Traders now see a 30% chance of a 25-basis-point U.S. rate cut this year, up from about 13% last week. Before the war, there were expectations of two cuts for this year.<\/p>\n “While\u00a0gold\u00a0and silver rallied strongly overnight, the broader signal was decisively risk-on rather than defensive positioning,” analysts at OCBC said in a note.<\/p>\n Among other metals, spot silver<\/a>\u00a0rose 0.8% to $80.15 per ounce, platinum<\/a>\u00a0gained 1.1% to $2,126.14, while palladium<\/a>\u00a0was down 0.1% at $1,585.60.<\/p>\n