Gold prices remained largely stable on Tuesday as investors approached a tense geopolitical deadline, with U.S. President Donald Trump having set a timeline for reopening the Strait of Hormuz. Currently, spot gold is down 0.51% to $4,651.29 per ounce.
Iran signaled its desire for a long-term resolution to conflicts with the United States and Israel, resisting external pressure to reopen the vital shipping route. Meanwhile, Trump intensified warnings that Iran could face severe consequences if a deal was not reached by his set deadline.
Oil Prices Continue to Rise
The geopolitical uncertainty contributed to a continued rise in oil prices, which held above $111 per barrel as markets reacted to Trump’s stern rhetoric. Rising crude prices have stoked fears of higher inflation, which traditionally benefits gold as a safe-haven asset. However, elevated interest rates have tempered gold’s appeal, given its lack of yield.
| Commodity | Price | Change |
|---|---|---|
| Spot Gold | $4,651.29/oz | -0.51% |
| Spot Silver | $72.17/oz | -0.9% |
| Platinum | $1,958.75/oz | -1.1% |
| Palladium | $1,478.49/oz | -0.5% |
| Brent Crude | $111+ | Elevated |
Market Focus Shifts to Federal Reserve
Attention is now shifting toward the U.S. Federal Reserve, with market participants awaiting the release of the minutes from its March policy meeting on Wednesday. Investors will also monitor key U.S. inflation metrics, including the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) , scheduled for later this week.
These indicators will provide crucial signals about the Fed’s monetary policy trajectory, which directly impacts gold prices. Higher interest rates typically weigh on gold as the precious metal offers no yield, while inflation fears tend to support safe-haven demand.
Geopolitical Context
The Strait of Hormuz remains a critical chokepoint for global oil supplies, with approximately 20% of the world’s petroleum passing through the waterway. Iran’s refusal to reopen the strait under external pressure has created sustained uncertainty in energy markets, supporting elevated oil prices.
Other Precious Metals
Other precious metals mirrored mixed trends, with spot silver dipping 0.9% to $72.17 per ounce, platinum dropping 1.1% to $1,958.75, and palladium decreasing 0.5% to $1,478.49.
