Gold Slips as Energy-Inflation Risks Linger Amid US–Iran Peace Talks
Gold prices weakened on Wednesday as uncertainty around US–Iran peace negotiations kept energy-driven inflation risks—and the prospect of restrictive interest-rate policy—firmly in play. Spot gold (XAU/USD) was hovering around $4,454 per troy ounce, trading near the day’s support zone.
Pressure on bullion persisted as markets judged that diplomacy has yet to deliver a clear, near-term breakthrough. Al Jazeera reported that indirect talks between Washington and Tehran continued despite an exchange of fire earlier this week. The US said a fragile ceasefire remains in place, while Iran reiterated warnings of retaliation if the truce is violated. US Secretary of State Marco Rubio also said this week that it could take “a few days” for the two sides to reach an agreement.
Weekend reports suggested the US and Iran were close to a framework arrangement that could extend the ceasefire and reopen the Strait of Hormuz—a critical waterway off Iran’s southern coast that in normal times carries about a fifth of global oil flows. The strait has been largely shut since the war began in late February, tightening supply and contributing to heightened energy-price volatility.
The rise in oil prices over recent weeks has fueled concern that inflation pressures could spread across major economies. As a result, markets have leaned toward the view that major central banks—including the Federal Reserve and the European Central Bank—may need to keep policy restrictive, or even raise rates to contain price pressures, a dynamic that continues to cap gold’s recovery potential as a non-yielding asset.
Source: Newsmaker.id
