The precious metal fell in overnight trading amid a setback to US-Iran developments to start the week.
The precious metal fell in overnight trading amid a setback to US-Iran developments to start the week. Traders were holding out some optimism with hope for both sides to sit down for talks in Pakistan today.
However, that has fallen apart and there is still no firm timeline or agenda of when we will see Washington and Tehran officials meet. That saw gold drop from near $4,780 to a low of $4,668 before catching a modest bounce since Asia trading today to hold closer to $4,765 currently. While it still doesn’t take away from the drop this week so far, the precious metal is at least showing some signs of life as traders continue to hang on to cautious optimism on US-Iran talks.
That is also reflected in the broader risk mood, with European indices holding slight gains and S&P 500 futures seen up 0.6% on the day. No talks are scheduled just yet with Iran remaining defiant that they will not come to the negotiating table so long as the US naval blockade holds. The hard line stance is consistent with their previous approaches to the conflict.