Gold Steady as Iran Talks Pressure US Dollar

An improvement in risk appetite supported bullion prices, despite continued Israeli attacks on Lebanon and Iran's failure to open the Strait of Hormuz, which US President Donald Trump criticized. US Vice President JD Vance confirmed the US is willing to negotiate in good faith.

US March Consumer Price Index (CPI) rose 3.3% year-over-year, meeting forecasts, up from 2.4% in February, while Core CPI increased to 2.6% year-over-year, below estimates of 2.7%. Investors expect the Federal Reserve funds rate to remain unchanged in the 3.50%-3.75% range for the rest of 2026, according to Prime Market Terminal data.

University of Michigan Consumer Sentiment dropped to a record low of 47.6 in April, down from 53.3, with American households expecting inflation to pick up to 4.8% over the next 12 months, up from 3.8%. San Francisco Fed President Mary Daly stated the CPI surprise was expected and policy is restrictive enough.

The US Dollar Index (DXY) fell 0.13% to 98.66, near a four-week low, providing a tailwind for Gold prices. Traders will monitor the resumption of US-Iran talks and developments regarding the Strait of Hormuz, alongside upcoming US housing, Producer Price Index (PPI), and jobs data.