Gold Consolidates Losses Below $4,500

(RTTNews) - Gold prices were little changed on Wednesday, recouping early losses despite a stronger dollar and higher U.S. Treasury yields.

Spot gold was steady at $4,482.58 an ounce, consolidating losses at nearly seven-week lows after U.S. President Donald Trump said the war with Iran will end "very quickly."

U.S. gold futures traded around the $4,480 per ounce mark, a day after yields on 30-year U.S. Treasury bonds reached levels last seen in 2007 on growing concerns about inflation and the outlook for interest rates and economic growth.

The dollar steadied near a six-week high and bonds remained under pressure as money markets factor in interest rate hikes from the European Central Bank and the Federal Reserve before the end of the year.

Oil prices were down nearly 2 percent in European trade after U.S. President Trump said that Iran wanted to make a deal "so badly", asserting that the ongoing conflict would end "very quickly."

He further stated that global oil prices will plummet soon due to abundant supply. Vice President JD Vance said that peace talks are making good progress, but Washington was "locked and loaded" to restart military operations if negotiations collapse.

In another development, the British government has relaxed sanctions on Russian energy imports to address rising fuel costs due to the effective blockade of the Strait of Hormuz.

Earlier this week, the United States announced another 30-day extension of a sanctions waiver for countries buying Russian oil and petroleum products currently stranded at sea.

Meanwhile, NATO is not drawing up any plans for a potential mission in the Strait of Hormuz and would need a political decision to do so, U.S. Air Force General Alexus Grynkewich, NATO's Supreme Allied Commander for Europe, said.