Gold drifts lower with eyes on US-Iran developments

Gold drifted lower on Wednesday after hitting a one-month peak as investors assessed the latest signals on the US-Iran situation and what they could mean for the interest rate outlook, reports Reuters.
Spot gold was down 0.6 per cent at $4,809.15 per ounce as of 8:47 a.m. ET (1247 GMT), after hitting its highest since March 18 earlier in the session. US gold futures fell 0.4 per cent to $4,831.60.
"Gold and silver are just seeing some mild and routine profit-taking after scaling overnight highs," said Jim Wyckoff, senior analyst at Kitco Metals.
"Gold prices have been rallying on improved risk appetite and selling off during bouts of risk aversion in recent sessions, running counter to the metal's traditional safe?haven role. Traders are currently more focused on the implications of tighter monetary policy and inflation pressures," he added.
US President Donald Trump said talks with Iran to end the war could soon resume and end in a deal, telling the world to watch out for an "amazing two days", while US forces imposing a blockade turned back vessels leaving Iranian ports.
Oil prices gained as shipping through the Strait of Hormuz remained constrained. Forty-five days after Iran's Revolutionary Guards declared the strait closed, transit through the waterway remains uncertain despite a two-week ceasefire.