loading
loading
(Bloomberg) -- Gold fell as traders monitored progress in talks between the US and Iran and comments by Federal Reserve officials for clues on how energy costs will influence the path forward for interest rates. Bullion dropped to trade below $4,300 a ounce, while a gauge of the US dollar rose to the highest since July. Several Fed policymakers have voiced concerns about the outlook for inflation since the central bank hiked rates last week for the first time in three years. Higher rates and a stronger greenback are negative for gold as it pays no interest and is priced in the US currency. Brent crude snapped five days of declines as investors tracked a renewed focus on diplomatic efforts to end the US-Iran war. President Donald Trump flagged progress in US talks with Iran. The discussions were the first between the two countries since around mid-June, shortly after the signing of a short-lived truce.Meanwhile, Fed Governor Michael Barr said further interest rate increases are likely needed to return inflation to the central bank’s 2% target.Gold has been dictated by the Fed’s rate outlook in recent weeks as investors assess whether elevated energy prices will keep inflationary pressure strong enough to prompt further Fed rate increases. Separately, the latest data showed US business activity rose at the fastest pace in more than five years as robust demand pushed up new orders and employment at manufacturers and service providers.Spot gold fell 1.6% to $4,290.54 an ounce at 11:18 a.m. in New York. Silver declined 3.5% to $64.7231 an ounce. Platinum and palladium were also lower. The Bloomberg Dollar Spot Index, a gauge of the US currency, was 0.5% higher.--With assistance from Yihui Xie and Jack Ryan.More stories like this are available on bloomberg.com©2026 Bloomberg L.P.
document fetched 2026-09-24 02:52 · canonical https://livemint.com/market/gold-falls-as-traders-weigh-us-iran-talk-progress-fedspeak-11790193438638.html