Gold wavers as traders weigh Trump’s deadline to strike Iran

Gold wavered after a two-day decline, as traders assessed US President Donald Trump’s latest threat to destroy Iranian infrastructure and the impact of a protracted war on economic growth.

Bullion traded in either direction near $4 650 an ounce, having lost more than 2% over the previous two sessions. Trump set a deadline of 8 p.m. Eastern Time Tuesday to reach a deal with Tehran or begin attacking power plants and bridges, raising the stakes in a conflict that’s caused a global fuel squeeze and stoked inflation fears.

Now in its sixth week, the war has heightened the prospects that central banks will delay cutting interest rates or even hike them. US Treasuries held small gains on Monday after Trump’s latest threats, with bond traders expecting the Federal Reserve to keep rates steady through the rest of the year. Higher borrowing costs weigh on gold as the metal doesn’t pay interest.

“The lack of resolution has kept markets on edge,” said Manav Modi, commodities analyst at Mumbai-based Motilal Oswal Financial Services Ltd. “Gold remains pressured by the combined effects of rising inflation expectations, tighter monetary outlook, and a stronger dollar, despite ongoing geopolitical uncertainty,” he said.

Gold has fallen about 12% since the conflict in the Middle East began at the end of February, with the metal’s traditional haven appeal also weakened by the need for investors to liquidate positions to cover losses elsewhere. The metal has moved largely in an inverse relationship with oil, which rose on Tuesday for a third day.

Countering this trend, however, cost pressures from the energy-supply shock are also weighing on economic growth, which is supportive for gold. The US service economy expanded at a slower pace in March as employment shrank by the most since 2023 and input prices accelerated sharply.

As bullion has declined, there are also signs that dip-buyers are slowly adding back their positions. Holdings by gold-backed exchange-traded funds rose last week for the first time since the war began, according to a calculation by Bloomberg.

Trump insisted in a media conference Monday that the Strait of Hormuz would have to be reopened as part of any deal with Iran to end the war. The maritime chokepoint linking the Persian Gulf to global markets has remained largely closed since the conflict began.

Tehran has so far rejected US proposals for ending the war and warned it would respond to more strikes by ramping up its own attacks in the Middle East.

Spot gold slipped 0.2% to $4 641.98 an ounce at 2:21 p.m. Singapore time. Silver fell 0.8% to $72.25. Platinum and palladium also declined. The Bloomberg Dollar Spot Index, a gauge of the US currency, edged up 0.1%.

© 2026 Bloomberg