Khaberni - Gold prices edged lower on Wednesday after hitting a month-high during the session as the dollar regained some strength, while expectations of another round of peace talks between the United States and Iran increased risk appetite.
Spot gold price fell 0.3% to $4828.07 an ounce at 02:49 GMT, after hitting its highest since March 18 earlier in the session. U.S. gold futures for June delivery settled at $4851.30.
The dollar rebounded from its lowest level in over a month, making commodities priced in it, such as gold, more expensive for holders of other currencies.
Oil prices fell while stocks rose on hopes that Iran would resume talks with the United States to end the conflict that led to the closure of the Strait of Hormuz, one of the world's major waterways for transporting crude oil and refined products.
Edward Meir, an analyst at Marex, said gold prices are affected by news from the Middle East in the short term, with optimism that Washington and Tehran will embark on talks.
Despite the slight decline, gold prices have increased by 1.6% this week due to renewed hopes for peace talks between the United States and Iran.
Meir said, "If things fall apart again, we can return to the pre-ceasefire pattern of falling gold prices, rising dollar, and declining stock prices."
U.S. President Donald Trump said on Tuesday that talks to end the war with Iran may resume in Pakistan in the next two days after the collapse of negotiations earlier in the week prompted Washington to impose a blockade on Iranian ports.
Adding to the uncertainty, the U.S. military announced late on Tuesday that its forces had completely stopped economic trade entering and leaving Iran by sea through a blockade.
Traders now see a 30% chance of a 25 basis point cut in U.S. interest rates this year, up from about 13% last week. Before the war, there were expectations of two cuts this year.
For other precious metals, spot silver price rose 0.8% to $80.15 an ounce, platinum price climbed 1.1% to $2126.14, while palladium price dropped 0.1% to $1585.60.
