Gold steadied near $4,360 an ounce as traders monitored progress in US-Iran nuclear talks for clues on energy costs and the Federal Reserve’s interest rate path. President Donald Trump described a "very good" meeting with Iranian envoys in New York, reviving hopes for a diplomatic off-ramp. Oil extended declines after Trump’s comments and reports Saudi Arabia aims to restore crude exports via its East-West pipeline, enabling a bypass of the Strait of Hormuz.

West Texas Intermediate has now fallen more than 10% since last Tuesday’s close. Gold has been sensitive to oil swings as investors assess whether elevated energy prices will keep inflationary pressures strong enough to prompt further Fed rate increases. Higher borrowing costs typically undermine bullion demand because it does not pay interest.

Richmond Fed President Tom Barkin warned it could take time for inflationary shocks to wane and there was a risk pressures could become entrenched. Meanwhile, gold imports into top consumer China have been stronger than ever this year, helped by a slump in international prices and a firmer yuan. Purchases through August topped 1,000 tons, surpassing the total for the whole of 2025, according to latest customs data.

Spot gold rose 0.1% to $4,363.50 an ounce in Singapore. Silver advanced 0.5% to $67.40 an ounce. The Bloomberg Dollar Spot Index was steady after rising for the previous three sessions.