Investors eye US-Iran peace talks; dollar dips, gold holds $4800, US oil below 90.

On Wednesday, Trump stated that his war with Israel is "coming to an end" and the White House is optimistic about reaching an agreement. A source familiar with Tehran's position said that if an agreement can be reached to avoid the conflict from erupting again, Iran may consider allowing ships to sail freely on the Oman side of the Strait of Hormuz without facing the risk of attack. The US dollar index rose and fell, ultimately closing down 0.01% at 98.08; The benchmark 10-year Treasury yield closed at 4.2880%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.7700%. On Wednesday, spot gold hit a one month high of $4871 and quickly fell back, closing around $4790, a drop of nearly 1%. Trump said the US Iran war is "coming to an end" and ceasefire negotiations are about to resume, but the Strait of Hormuz is still blocked, oil prices are fluctuating at high levels, and the Federal Reserve's Gulsby warns of stubborn inflation, interest rate cuts or delays until 2027. Gold's safe haven attribute failed, traders focused on high interest rate opportunity costs, US stocks hit new highs, and gold entered a period of volatile adjustment. After news spread that Iran may provide convenience for ships around the Strait of Hormuz, international oil prices stabilized. WTI crude oil hit a low of $87.05 and ultimately closed down 0.77% at $91.52 per barrel; Brent crude oil ultimately closed down 0.32% at $94.91 per barrel.