Gold prices declined Wednesday after reaching their highest level in a month, as investors awaited developments in the talks between the US and Iran and what this might mean for interest rate expectations.
Spot gold fell 0.7 percent to $4,807.34 per ounce, after hitting its highest level since March 18 earlier in the session.
US gold futures also declined 0.4 percent to $4,830.60. As for other precious metals, spot silver was steady at $79.58 per ounce, while platinum rose 0.2 percent to $2,108.79, but palladium fell 1.2 percent to $1,568.15.
Market analysts noted that easing geopolitical tensions could reduce demand for safe-haven assets such as gold, prompting some investors to lock in profits after the recent rally. However, uncertainty surrounding the outcome of the negotiations and broader global economic conditions continued to provide underlying support to bullion prices.
Meanwhile, traders are closely monitoring signals from the US Federal Reserve regarding the future path of interest rates, as higher rates tend to diminish the appeal of non-yielding assets like gold.
Any indication of a delay in rate cuts could keep prices under pressure in the near term, while dovish signals may help gold regain upwardmomentum.
