Gold prices stabilized below $4,650 per ounce on Tuesday as markets adopted a cautious “wait-and-see” stance ahead of President Trump’s 8 p.m. ET deadline. This pause in momentum comes after reports that Iran has cut off direct communications with the United States in response to Trump’s threats against its civilization, though it continues to engage via intermediaries over a potential ceasefire.
While gold typically benefits from geopolitical tensions, its safe-haven appeal is currently being overshadowed by a strong US dollar and rising Treasury yields, both driven by mounting stagflation concerns. Even after US forces carried out strikes on military targets on Kharg Island overnight, the absence of a sustained rally in gold suggests that markets have already priced in the risk of further military escalation.
Domestic support for bullion remains limited as the surge in oil prices to $116 per barrel reinforces expectations that the Federal Reserve will keep monetary policy tight. However, longer-term support is underpinned by central-bank buying, particularly from the People’s Bank of China, which purchased 160,000 ounces of gold in March.
