(Bloomberg) — Gold was steady as traders monitored progress in talks between the US and Iran for clues on how energy costs will influence the Federal Reserve’s path for interest rates.
Bullion was trading around $4,360 an ounce, after swinging between gains and losses on Tuesday before ending the session up 0.4%. President Donald Trump said US officials had a “very good” meeting with Iranian envoys in New York, reviving fragile hopes for a new diplomatic off-ramp, after he earlier threatened to annihilate the country.
Oil extended a decline on Trump’s latest comments, as well as reports that Saudi Arabia aims to restore crude exports via its East-West pipeline in the coming days, enabling Riyadh to resume a bypass of the Strait of Hormuz. West Texas Intermediate has now fallen more than 10% since last Tuesday’s close.
Gold has been sensitive to recent swings in oil as investors assess whether elevated energy prices will keep inflationary pressures strong enough to prompt further Fed rate increases. Higher borrowing costs typically undermine support for bullion because it doesn’t pay interest.
Traders are also tracking comments by Fed officials for clues on the rate path, after the central bank voted unanimously last week to hike for the first time in three years. Richmond Fed President Tom Barkin warned on Tuesday it could take time for inflationary shocks to wane and there was a risk elevated pressures could become entrenched. He stopped short of signaling whether additional tightening was needed.
Meanwhile, gold imports into top consumer China have been stronger than ever this year, helped by a slump in international prices and a firmer yuan. Purchases through August topped 1,000 tons, surpassing the total for the whole of 2025, according to the latest customs data, which goes back to 2017.
Spot gold rose 0.1% to $4,363.50 an ounce at 7:55 a.m. in Singapore. Silver advanced 0.5% to $67.40 an ounce, after gaining 1.6% the day before. Platinum and palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US currency, was steady after rising for the previous three sessions.
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