Gold steadies as Iran talks temper concerns over Fed rate path
The metal has been sensitive to oil swings as investors weigh if elevated energy prices will prompt more rate hikes
Gold steadied around US$4,360 per ounce as traders monitored talks between the United States and Iran, looking for clues on how energy costs might affect the Federal Reserve's interest rate decisions. The metal had fluctuated throughout Tuesday, with US President Donald Trump reporting a "very good" meeting with Iranian officials in New York, sparking renewed optimism about a new diplomatic approach.
Meanwhile, oil prices fell further, dropping more than 10% since last Tuesday's close, as Saudi Arabia announced plans to resume crude exports through its East-West pipeline, potentially bypassing the Strait of Hormuz. Gold's sensitivity to oil price swings was evident, as investors weighed the potential for continued inflationary pressure and stronger Fed rate hikes.
Federal Reserve officials, including Richmond Fed President Tom Barkin, cautioned that it may take time for inflationary forces to subside, and there was a risk they could become entrenched. China's gold imports remained robust in 2026, surpassing 2025 figures, thanks to lower international prices and a stronger yuan. Spot gold closed slightly higher at US$4,363.50 per ounce in Singapore, while silver and platinum also showed modest gains. The Bloomberg Dollar Spot Index remained stable after a three-day upward trend.
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