Gold prices showed a steady trend on Wednesday, holding close to a one-week high achieved earlier in the day, as investors exercised caution while looking for more insight into U.S.-Iran peace talks. Spot gold held steady at 4,841.76 per ounce as of 0110, after reaching a high not observed since April 8 earlier in the session. U.S. gold futures for June delivery rose by 0.3%, hitting a price of $4,866.50. “Analysts observed that although gold and silver experienced a strong rally overnight, the overall signal indicated a clear preference for risk-taking rather than a defensive stance.”

Oil prices fell, while stock markets rose, driven by optimism about the possible restart of talks between Iran, the U.S., and Israel to address the conflict affecting activities in the Strait of Hormuz. The U.S. dollar stayed near its lowest level in over a month, making dollar-denominated commodities, like bullion, more affordable for those holding other currencies. Discussions intended to resolve the Iran conflict could restart in Pakistan in the next 48 hours, according to U.S. President Donald Trump on Tuesday. This comes after the collapse of negotiations over the weekend, which resulted in Washington enforcing a blockade on Iranian ports.

Meanwhile, data indicated that U.S. producer prices rose less than anticipated in March, with service costs remaining stable; however, rising energy prices due to the conflict with Iran were increasing inflationary pressures. Traders currently estimate a 30% probability of a 25-basis-point reduction in U.S. interest rates this year, up from about 13% the previous week. Before the conflict, there were expectations of two cuts for this year.

The SPDR Gold Trust, known as the largest gold-backed exchange-traded fund in the world, reported a decrease in its holdings by 0.5%, resulting in a total of 954.48 tonnes as of Monday. Among other metals, spot silver increased by 0.4% to $79.87 per ounce, platinum rose by 1.1% to $2,127.45, and palladium saw a slight uptick of 0.1% to $1,596.28.