Gold steadies near one-week high; eyes on US–Iran talks

Gold prices were largely steady on Wednesday, hovering around a one-week high hit earlier in the session, as investors stayed on the sidelines awaiting further clarity on U.S.-Iran peace talks.

FUNDAMENTALS

* Spot gold held steady at 4,841.76 per ounce as of 0110 GMT, after hitting its highest level since April 8 earlier in the ‌session.

* U.S. ⁠gold ⁠futures for June delivery rose 0.3% to $4,866.50.

* "While gold and silver rallied strongly overnight, the broader signal was decisively risk-on rather than defensive positioning," analysts at OCBC said in a note.

* Oil prices fell, and stocks gained, on hopes Iran will resume talks with the U.S. and Israel to end the conflict that has shut the Strait of Hormuz.

* The U.S. ⁠dollar hovered ‌near its lowest level in over a month, making dollar-denominated commodities, such as bullion, more affordable for holders of other currencies.

* ⁠Talks to end the Iran war could resume in Pakistan over the next two days, U.S. President Donald Trump said on Tuesday, after the collapse of weekend negotiations prompted Washington to impose a blockade on Iranian ports.

* Meanwhile, data showed that U.S. producer prices increased less than expected in March as the cost of services was unchanged, but surging energy prices because of the ‌war with Iran were fanning inflation pressures.

* Traders now see a 30% chance of a 25-basis-point U.S. rate cut this year, up from about 13% last ⁠week. Before the war, there were expectations of two cuts for this year.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.5% to 954.48 tonnes on Monday.

* Among other metals, spot silver rose 0.4% to $79.87 per ounce, platinum gained 1.1% to $2,127.45, and palladium was up 0.1% to $1,596.28.

DATA/EVENTS (GMT)

0645 France CPI (EU Norm) Final MM, YY Feb

0645 France CPI MM, YY NSA Mar

1000 EU Reserve Assets Total Mar

1230 US Import Prices YY Mar