The price of safe-haven gold plunged more than 2% to $4,700 again following the lack of confirmation of the second round of talks between the United States and Iran in Pakistan.
At 9 am, gold prices were trading at $4,742, up 0.51% since it opened in early trading Wednesday in the Asian session.
Peace talks between Washington and Tehran appeared to be increasingly deadlocked as the two sides failed to reach an agreement. The US delegation led by Vice President Vance with special envoys Steve Witkoff and Jared Kushner remained in Washington, while Iran has yet to decide whether to return to the negotiating table.
Tehran continued to demand that economic sanctions by the United States be lifted as a key condition. At the same time, President Donald Trump maintained pressure on Iran by demanding compliance with the conditions set by Washington.
In the United States, economic data showed a strong performance as retail sales jumped 1.7% in March, exceeding market expectations. The increase was driven by higher fuel costs and consumer spending due to tax refunds, while annual growth remained stable at around 4%.
In addition, the four-week average of ADP employment data rose to 54,800 from 39,000, reflecting a still resilient labor market. This development reinforced the sentiment that the US economy remains strong despite global pressures.
In monetary policy developments, Fed Chair candidate Kevin Warsh voiced support for a change in approach to controlling inflation, including rejecting the use of forward guidance.
He also stressed the importance of the central bank's independence in deciding interest rates.
The US dollar, meanwhile, showed a recovery as the US Dollar Index (DXY) rose 0.43% to 98.47, with a daily high of 98.57. At the same time, the yield on 10-year US Treasury bonds rose to 4.305%, putting pressure on gold, which is usually more attractive in a low-interest rate environment.
In commodity markets, oil prices surged with WTI crude rising more than 5.50% to $90.77 a barrel. The gains were supported by concerns about potential supply disruptions following tensions in the Strait of Hormuz.
Heading into the week, markets will focus on key US economic data including jobless claims and the S&P Global Flash PMI report for April due out on Thursday.
