FX.co ★ Gold Steady as US-Iran Talks Progress, but Risks Remain

Gold hovered around $4,820 per ounce on Wednesday, just below one-month highs, as investors evaluated the latest developments in US-Iran peace talks aimed at easing tensions in the Middle East. According to the Associated Press, mediators have made headway in efforts to extend the ceasefire, with both sides reportedly agreeing in principle to continue negotiations on Tehran’s nuclear program, security in the Strait of Hormuz, and war-related compensation. US President Donald Trump indicated that a deal could be close, though uncertainty persists following Washington’s announcement that it plans to deploy an additional 10,000 troops to the region soon. At the same time, the US dollar is trading near six-week lows, lending support to bullion prices. Expectations for further monetary tightening have also eased, as the Federal Reserve adopts a more cautious stance while it evaluates inflation risks. Even so, gold—widely viewed as an inflation hedge—has declined about 10% since the Iran conflict began, pressured by higher interest rates that reduce the appeal of this non-yielding asset.