The gold extended losses on Wednesday as investors sought shelter from a tech stock sell-off and positioned for Fed rate hikes. Policymakers sounded increasingly hawkish amid the strength of economy.

Vance said the talks in Switzerland were continuing and Tehran had agreed to permit the IAEA inspectors back into Iran. Still Tehran rejected the claim, clouding the negotiation outlook.

Since the outbreak of the war, gold's reputation as a safe-haven asset in times of turmoil has come under pressure as some of the drivers behind its ascendance have been called into question.

Wall Street is changing its tune on gold, with several banks downgrading their price forecasts on the metal. Deutsche Bank has revised its price target to $4,300 in Q3 if the Fed stays on hold.

Goldman estimates sustained central bank buying at 50 tonnes a month through 2026 and 40 tonnes in 2027, which may provide a durable structural floor for gold prices.

Chinese gold imports surged to the highest level in two years last month despite sagging prices and cooling demand, while the country’s ETFs reported their first outflows since August 2025.

EBC Financial Group analyst says gold remained in pains after a massive Bearish Marubozu shattered the structural support. The price could bounce back to the 4070 area, but that alone would not reverse the downtrend.

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