Gold prices rose for a second consecutive session as traders assessed the potential for ceasefire negotiations between the United States and Iran. Spot gold advanced as much as 2.8%, building on a 1.6% gain from the previous trading day. On Wednesday, White House Press Secretary Caroline Levitt affirmed that peace talks with Iran remain underway. Concurrently, Iran publicly rejected U.S. overtures and set forth new conditions for ending the conflict, which has significantly impacted the Middle East and global markets. According to Helen Amos, a commodities analyst at BMO Capital Markets, despite ongoing back-and-forth, recent U.S. actions indicate "a willingness to move toward some form of resolution." Amos noted, "The U.S. is attempting to open a dialogue, which I believe is the crucial point." Referring to the conflict, she added, "Markets are beginning to perceive a possible exit path in the coming weeks." She further stated that this has provided "a decent rebound" for precious metal prices, "though there is no concrete evidence yet that speculative capital is returning to the sector." Since the outbreak of hostilities over three weeks ago, gold has largely moved in tandem with equities and inversely to crude oil. Rising energy prices have heightened inflation risks, leading investors to anticipate that the Federal Reserve and other central banks may keep rates steady or even hike them, which weighs on non-yielding gold. In a report issued Wednesday, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, noted that reduced investor positioning, weaker purchasing power in the Middle East, and expectations of interest rate increases have all pressured gold prices. "With some of these factors potentially reversing in the coming months, we view the current pullback in gold as an opportunity to build positions." At the time of writing, spot gold was up 0.07% at $4,509.78 per ounce. Silver fell 0.76% to $70.71, after closing 3% higher the previous session. Platinum gained, while palladium declined. The Bloomberg Dollar Spot Index edged higher.