Gold fell to $4,620 per ounce on Tuesday, erasing early gains and extending losses for a third consecutive session. The drop came even as escalating tensions between Iran and the United States — highlighted by President Trump’s ultimatum to Tehran and reports of explosions in Iran — failed to sustain safe-haven demand.
Trump warned that Iran’s “whole civilization will die” unless a “less radicalized” government agrees to U.S. terms by 8:00 pm ET, including reopening the Strait of Hormuz and implementing a ceasefire. In response, Iran threatened “beyond-the-region” retaliation if Washington crosses its “red lines.”
Despite the geopolitical turmoil, gold remains 12% below its pre-conflict level after suffering its steepest monthly decline since 2008 in March. The ongoing crisis has bolstered the U.S. dollar and reduced expectations for Federal Reserve rate cuts, both of which have added further downward pressure on gold.
Amid this backdrop, China’s central bank provided a rare source of support, adding 160,000 troy ounces of gold to its reserves in March — its largest monthly purchase in more than a year.
