Gold edges lower as traders weigh Fedspeak and US-Iran talks
The metal has been sensitive to oil swings as investors weigh if elevated energy prices will prompt more rate hikes
Gold prices slipped as investors watched discussions between the US and Iran, as well as remarks from Federal Reserve officials, for insights into how energy costs may impact future interest rate decisions. The precious metal was trading near $4,340 per ounce, reversing a slight gain from the prior session. Several Fed officials have expressed concerns about inflation since the central bank raised rates for the first time in three years last week.
Richmond Fed President Tom Barkin indicated that it might take time for inflationary pressures to subside and cautioned that there is a risk these issues could persist. Susan Collins, president of the Boston Fed, suggested that a slightly tighter federal funds rate could help lower inflation, given the improving labor market. Meanwhile, the conversation surrounding diplomatic efforts to resolve the US-Iran conflict also caught the attention of traders.
US President Donald Trump reported a "very good" meeting with Iranian negotiators in New York, sparking renewed optimism about a potential diplomatic resolution, following earlier threats to annihilate Iran. Oil prices declined in response to Trump's latest statements, along with reports that Saudi Arabia intends to resume crude exports through its East-West pipeline soon, allowing the kingdom to bypass the Strait of Hormuz.
West Texas Intermediate crude has fallen over 10% since Tuesday's close. Analyst Priyanka Sachdeva from Phillip Nova noted that gold is currently navigating a balance between safe haven demand and rising-rate pressures, and is likely to remain sensitive to developments in oil and interest rates in the near term. Gold imports into China, the world's largest consumer, have been robust in 2026, driven by falling international prices since February and a stronger yuan.
Imports through August exceeded 1,000 tonnes, surpassing the entire 2025 total, according to customs data dating back to 2017. Spot gold declined 0.6% to $4,334.27 an ounce by 11 am Singapore time, while silver slipped 1% to $66.39 an ounce after a 1.6% increase the previous day. Platinum and palladium also recorded lower prices.
The Bloomberg Dollar Spot Index, a measure of the US currency, rose by 0.1% after gaining for the previous three sessions.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- Dubai gold prices: Slight drop as fed comments and US-Iran talk take centerstage gulfnews.com
- Bursa opens lower as investors take profits amid US-Iran talks freemalaysiatoday.com
