US-Iran Talks Weigh on Gold Prices Amid Ongoing Rate Uncertainty
Gold prices remained steady on Wednesday as investors monitored progress in talks between the US and Iran to gauge the impact of energy costs on the Federal Reserve's interest rate path.
The precious metal had been sensitive to recent oil price swings, with investors weighing whether elevated energy prices would keep inflationary pressures strong enough to prompt further Fed rate increases.
US President Donald Trump's comments that US officials had a 'very good' meeting with Iranian envoys in New York revived fragile hopes for a new diplomatic off-ramp, after he earlier threatened to annihilate the country.
Oil prices extended their decline on Trump's latest comments and reports that Saudi Arabia aims to restore crude exports via its East-West pipeline, enabling Riyadh to resume a bypass of the Strait of Hormuz.