Gold prices fell to a one-week low, pressured by a stronger U.S. dollar and renewed optimism around U.S.–Iran nuclear talks in Oman. Spot gold dropped 1.5% to $4,918.65 per ounce, while futures slipped further. Investors are weighing geopolitical risks, Federal Reserve policy cues, and potential diplomatic breakthroughs.
Global gold markets saw volatility this week as indirect negotiations between the U.S. and Iran resumed in Oman. The talks, aimed at easing military and economic tensions, triggered a retreat from gold’s recent highs above $5,100 per ounce.
At the same time, a stronger U.S. dollar and expectations around the Federal Reserve’s monetary policy added pressure, making bullion more expensive for non-dollar holders. Spot gold fell 1.5% to $4,918.65 per ounce, while U.S. futures for April delivery slipped 2.2% to $4,937 per ounce.
Analysts note that while gold remains a safe-haven asset, its near-term trajectory will depend on whether the Oman talks yield progress and how the Fed signals its stance on interest rates.
Major Takeaways
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Spot gold fell 1.5% to $4,918.65 per ounce; futures dropped 2.2% to $4,937
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Stronger U.S. dollar weighed on bullion prices
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U.S.–Iran nuclear talks in Oman triggered volatility in gold markets
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Gold retreated from record highs above $5,100 per ounce earlier this month
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Investors tracking both geopolitical risks and Federal Reserve policy cues
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Market sentiment hinges on potential diplomatic breakthrough and rate outlook
Conclusion
Gold’s decline reflects the delicate balance between geopolitical uncertainty and monetary policy expectations. While U.S.–Iran talks offer hope of easing tensions, the stronger dollar and Fed signals continue to shape investor sentiment. For now, gold remains a barometer of global risk, sensitive to both diplomacy and economic policy.
Sources: The Economic Times, MarketMinute, CNBC