Gold prices fluctuated as traders evaluated the potential outcomes of US-Iran peace talks set to begin in Islamabad this weekend. Currently priced at approximately $4,757 per ounce, gold is poised for a 1.8% increase this week. Tensions remain high, with US President Donald Trump warning Iran against imposing fees on ships in the Strait of Hormuz, a critical passageway for global oil. Recent US economic data showed a significant rise in consumer prices, yet core inflation remained stable, leading traders to anticipate possible interest rate cuts from the Federal Reserve. This environment typically favors gold, which does not yield interest. Additionally, major bullion buyers like Poland and China are actively increasing their gold reserves, with Poland aiming for 700 tons and China purchasing 5 tons in March, marking its largest monthly acquisition in over a year. Spot gold was down 0.1% at $4,760.69 per ounce in New York, while silver rose 1% to $76.11 per ounce.