Gold Retreats as Dollar Nears 18‑Month High Amid US‑Iran Talks and Inflation Outlook

Gold slipped 0.3% to $4,828.07 an ounce at 0249 GMT after earlier touching a one‑month peak. June U.S. gold futures held steady at $4,851.30. The greenback has rebounded from a more than month‑low, making dollar‑denominated assets pricier for foreign currency holders.

Oil prices fell while equities climbed on renewed optimism that the United States and Iran could resume negotiations to end the conflict that has closed the Strait of Hormuz. The prospect of a ceasefire has lifted risk appetite, according to Marex analyst Edward Meir.

Gold remains up 1.6% for the week, buoyed by hopes of a U.S.‑Iran truce. Meir cautioned that a collapse could trigger a return to a pre‑ceasefire pattern of lower gold, a stronger dollar and weaker stocks.

President Donald Trump said the talks could resume in Pakistan within the next two days, following the collapse of weekend talks that led Washington to block Iranian ports. The U.S. military confirmed a full maritime blockade of Iranian trade.

Market participants now assign a roughly 30% probability to a 25‑basis‑point U.S. rate cut this year, up from about 13% a week ago. Earlier expectations had called for two cuts.

OCBC analysts noted that while precious metals rallied strongly overnight, the broader market signal was decisively risk‑on rather than defensive.

Other metals moved as follows: spot silver rose 0.8% to $80.15 an ounce, platinum gained 1.1% to $2,126.14, and palladium slipped 0.1% to $1,585.60.