Gold Dips as US-Iran Talks Falter, CPI Looms

U.S. Gold Futures fell 1.0% to $4,772.07 an ounce. The U.S.-Iran ceasefire, announced by President Donald Trump, showed fragility due to continued Israeli military activity in Lebanon, imperiling potential weekend talks in Pakistan.

Iranian media reported Tehran denied a delegation arrived in Islamabad, stating talks are suspended while Israeli attacks persist. The Strait of Hormuz, a critical artery for global oil supplies, remains largely shut.

Elevated oil prices, which recently surged to nearly $120 a barrel, have fueled global inflation worries, suggesting central banks might maintain higher interest rates, typically negative for gold. Investors have favored the U.S. dollar, though a tracker of the greenback against a basket of its currency peers was weaker by more than 1% over the past week.

Markets await U.S. CPI data, expected to show a sharp acceleration in the headline figure compared to February due to rising gasoline prices, with the national average retail gasoline price exceeding $4 a gallon. ING analysts argued the Federal Reserve may downplay the headline CPI, focusing on core inflation.