Gold steady as caution prevails ahead of Trump's Iran deadline

2026-04-08 07:22:44

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Gold prices steadied Tuesday as investors eyed a deadline set by U.S. President Donald Trump for reopening the Strait of Hormuz.

Shannon Stapleton | Reuters

Gold prices were little changed on Tuesday, as caution prevailed in the market ahead of U.S. President Donald Trump’s looming deadline for Iran to reopen the Strait of Hormuz or risk devastating attacks on its infrastructure.

Spot gold was flat at $4,648.32 per ounce, after rising ⁠by ‌1% earlier in the session. U.S. gold futures fell 0.3% to $4,670.90.

“The gold market is treading water ahead of this evening’s U.S.-imposed 8 p.m. Eastern Time deadline. It is on hold as traders wait to see what happens,” said Jim Wyckoff, senior analyst at Kitco Metals.

Strikes on Iran intensified throughout the day, but Iran showed no sign of accepting Trump’s ultimatum to open the Strait by the end of Tuesday. The U.S. president said “a whole civilization will die tonight” unless Tehran ⁠reached a last-minute deal.

“Gold traders are more focused on what central banks might do with ‌their interest rates than they are about ‌geopolitics. If major economies hold off on lowering interest rates, that can be extrapolated to mean less demand for gold,” Wyckoff said.

Oil prices have surged since the Iran ⁠conflict intensified supply concerns. Higher energy costs feed into inflation, leaving central banks ⁠with little leeway to cut interest rates. Although gold is a ⁠hedge against inflation, it is less attractive in a high-rate environment as it offers no yield.

The market is also focused on minutes from the Federal Reserve’s ‌meeting in March, which will be released on Wednesday. Additionally, U.S. Personal Consumption Expenditures data for February is due on Thursday, and the Consumer Price Index for March on Friday. Elsewhere, China’s central bank continued gold purchases for a 17th consecutive month, data showed.

Among other metals, spot silver lost 2.7% to $70.83 per ounce, ‌platinum shed 3.4% to $1,911.37 and palladium fell 4.3% to $1,421.75.

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