Gold fell 1% after hitting eight-week highs as traders took profits amid Israel-Iran tensions and Fed policy focus.

• Spot gold dropped to $3,396.09 after rising 1% earlier, driven by profit-taking post geopolitical surge.
• Iran signals desire to end hostilities and resume nuclear talks via intermediaries, easing some tensions.
• Investors await Fed's rate decision; central bank likely to hold rates steady amid economic uncertainty.