Gold Slips as Markets Watch Trump’s Iran Strait Deadline

Gold edged lower on Tuesday as investors remained cautious ahead of a U.S. deadline for Iran to reopen the Strait of Hormuz.Spot gold fell 0.2% to $4,638.30 per ounce by 0539 GMT, while U.S. gold futures for June delivery declined 0.4% to $4,664.

“Everyone is waiting for the outcome of the president’s latest statements,” said Ilya Spivak, head of global macro at Tastylive, a financial derivatives platform.

Tensions in the region remain high as Iran and Israel exchanged attacks, and Tehran refused to reopen the Strait of Hormuz or accept a ceasefire deal ahead of President Trump’s ultimatum.

Rising oil prices, holding above $110 a barrel, have added to inflation concerns. While gold often benefits during inflationary periods, higher interest rates reduce its appeal as a non-yielding asset.

Federal Reserve officials, including Cleveland Fed President Beth Hammack and Chicago Fed President Austan Goolsbee, have stressed that inflation remains a bigger challenge than employment, supporting continued tight monetary policy.

Markets widely expect no Fed rate cuts this year, according to CME’s FedWatch tool. Investors now await minutes from the Fed’s March policy meeting, along with upcoming U.S. inflation data, including the Personal Consumption Expenditures (PCE) and Consumer Price Index (CPI).

“Last year, gold followed its own speculative narrative. We may see that pattern re-emerge, and by year-end prices could approach $5,500 to $6,000,” Spivak added.

Other precious metals also retreated: spot silver fell 0.8% to $72.19 per ounce, platinum dropped 1% to $1,959.82, and palladium slid 0.6% to $1,475.93.