Gold Prices Dip Amid Fed Concerns and Renewed Iran Talks
Gold prices edged lower on Thursday as traders assessed comments from Federal Reserve officials and progress in US-Iran talks for clues on interest rates. Spot gold fell 0.6% to $4,334.27 an ounce at 11 a.m. in Singapore.
Fed policymakers have expressed concerns about inflation since last week's rate hike. Richmond Fed President Tom Barkin warned that it may take time for inflationary shocks to subside and there's a risk of entrenched pressures. Boston Fed President Susan Collins stated that a somewhat more restrictive federal funds rate would help ensure durable returns to target, given the labor market is 'on a better footing.'
Investors are also tracking renewed diplomatic efforts to end the US-Iran war. President Donald Trump said US officials had a 'very good' meeting with Iranian envoys in New York, reviving fragile hopes for a new diplomatic off-ramp.