Gold Edges Lower As Dollar Stabilizes Ahead Of Possible US-Iran Peace Talks

(RTTNews) - Gold prices slipped from a one-month high on Wednesday as the dollar regained some ground ahead of possible new peace talks between the United States and Iran in Pakistan.

Spot gold fell 0.8 percent to $4,800.98 an ounce, after having hit its highest since March 18 earlier. U.S. gold futures for June delivery were down 0.6 percent at $4,823.15.

The U.S. dollar index stabilized, after having dropped to its lowest level in over six weeks amid prevailing optimism around a ceasefire and a possible resolution, following President Trump's comments about resuming talks in Pakistan.

Trump indicated in an interview that the second round of U.S.-Iran talks "could happen over the next two days" to work out a deal that could end the war that began on Feb. 28.

According to media reports, Iran and Pakistan are exchanging diplomatic messages, but no official date has been set yet for the resumption of peace talks.

An Iranian embassy official in Islamabad reportedly said the next round of talks could be held later this week or early next week.

The United States has reportedly set out two new conditions before restarting negotiations.

Washington wants full and unrestricted reopening of the Strait of Hormuz, Israel Hayom reported, adding the Americans are sticking to a position of reciprocity.

Elsewhere, a U.S. statement said that Lebanon and Israel have agreed to hold direct negotiations after "productive discussions" in Washington on Tuesday.

Hopes of renewed U.S.-Iran negotiations eased fears of an energy-led inflation shock and prompted traders to dial back hawkish expectations for Fed policy.

European Central Bank President Christine Lagarde said Tuesday that the central bank is currently sitting between baseline and adverse scenarios and that policymakers need to keep an eye on the medium term while checking incoming data.