XAU/USD trades close to a two-week high as the USD weakens amid optimism over US-Iran talks easing energy price pressures.
Gold (XAU/USD) remains firm near a two-week high, trading just below levels reached earlier this week. The USD has retreated from a four-day uptrend as diplomatic efforts between the US and Iran raise hopes of easing geopolitical tensions, which could reduce energy prices and temper hawkish Fed expectations.
Top negotiators from both nations have signaled ongoing engagement, with US Secretary of State Marco Rubio indicating openness to talks. Mediators are reportedly working to revive negotiations, though military strikes and counterattacks continue, heightening regional instability.
The commodity’s strength reflects investor caution amid mixed signals, as escalating conflicts contrast with diplomatic progress. Market focus remains on potential energy supply disruptions and Fed policy shifts.