Gold prices retreat modestly amid ongoing US-Iran negotiations and fears of sustained energy-driven inflation pressures.
Spot gold fell 0.4% to $4,491.28 per ounce in early trading Wednesday, while gold futures declined 0.3% to $4,523.20. Investors remain cautious as indirect US-Iran talks continue, with both sides signaling a fragile ceasefire despite recent military exchanges.
Prior sessions saw gold stabilize near $4,500 as markets priced in tighter oil supplies from prolonged disruptions in the Strait of Hormuz. Analysts had expected a muted reaction to geopolitical developments, though persistent inflation concerns kept volatility elevated.
The prospect of higher crude prices has fueled expectations of further central bank tightening, with traders monitoring comments from Federal Reserve and European Central Bank officials for policy clues.