Analyst: Optimistic expectations for US-Iran talks support gold, but the Federal Reserve's neutral stance limits upward momentum

Mars Finance News, on April 17, Investinglive analyst Giuseppe Dellamotta stated that despite several positive factors such as declining real yields, easing financial conditions, and a weakening dollar, the recent upward momentum of gold has slowed. Since the decline at the end of January, gold’s performance has indeed been less impressive, mainly due to the Federal Reserve shifting from a dovish stance to a neutral one. However, under the optimistic expectation of a U.S.-Iran agreement, gold should still find support, and the downside should be limited. Everything now depends on the U.S.-Iran negotiations. If negotiations break down again, gold prices could see a larger correction, but as long as a ceasefire agreement holds, the decline should be limited. On the other hand, if a peace agreement is reached, gold could receive a new boost, continuing its rally and reaching new highs. To drive a larger increase in gold prices, the Federal Reserve would need to shift back to a dovish stance. (Jin10 Data APP)