By: Economy Middle east

Gold prices dipped slightly on Wednesday after reaching a one‑month high earlier in the session, as the dollar regained some footing and the prospect of another round of peace talks between the United States and Iran lifted risk appetite.

Spot gold was down 0.2 percent at $4,815.9 an ounce as of 9:40 a.m. UAE time, after touching its highest level since March 18 earlier in the day. U.S. gold futures for June delivery inched down 0.16 percent to $4,843.51.

In the UAE, local gold rates posted declines, with 24‑carat gold falling AED5.25 to AED567.00 and 22‑carat easing AED4.50 to AED525.25.
21‑carat gold edged down AED4.50 to AED503.50, while 18‑carat slid AED4.00 to AED431.50. Meanwhile, 14‑carat gold dropped AED3.25 to AED336.50.

The U.S. dollar rebounded from its lowest level in more than a month, making dollar‑denominated commodities such as gold more expensive for holders of other currencies.

Oil prices fell while stock markets advanced, on optimism that Iran may resume talks with the United States to end the conflict that has shut the Strait of Hormuz, one of the world’s main shipping lanes for crude and refined products.

Despite a modest pullback, gold prices are up 1.6 percent this week on renewed hopes for U.S.-Iran peace talks.

Talks aimed at ending the conflict involving Iran could resume in Pakistan over the next two days, U.S. President Donald Trump said on Tuesday, after the collapse of weekend negotiations prompted Washington to impose a blockade on Iranian ports.

Adding to the uncertainty, the U.S. military stated late Tuesday that American forces have fully halted sea‑borne economic trade to and from Iran through the blockade.

Traders now see a 30 percent chance of a 25‑basis‑point U.S. rate cut this year, up from about 13 percent last week; before the conflict, the market had priced in two cuts for 2026.

Among other metals, spot silver fell 0.01 percent to $79.33 an ounce, while platinum climbed 0.37 percent to $2,124.95 and palladium slipped 0.09 percent to $1,599.50.