Shengbao Bank: Gold price drops, traders weigh progress in US-Iran negotiations and Fed's hawkish signals.

With investors weighing the prospects of peace talks between the United States and Iran and the US monetary policy, the price of gold fell. In early trading, New York gold futures fell by 0.7% to $4,218.20 per ounce. Analysts at Shengbao Bank stated, "Currently, this yellow metal is still in a state of technical stagnation." Progress has been made in US-Iran negotiations, including efforts to ensure safe passage in the Strait of Hormuz despite facing diplomatic challenges in Lebanon, easing concerns about disruptions in energy supply and alleviating fears of broader inflationary impacts. However, Federal Reserve Chairman Kevin Wash's hawkish comments have reinforced expectations that US interest rates will remain high for a longer period, reducing the attractiveness of non-yielding assets. Meanwhile, the US dollar index rose by 0.1% to 100.93, making bulk commodities priced in dollars more expensive for overseas buyers.