Gold Stabilizes Ahead of Trump's Final Deadline for Iran and the Strait of Hormuz
Gold Prices Stabilize as Investors Await Trump's Deadline for Iran
Gold prices stabilized today, Tuesday, as investors remained cautious ahead of the deadline set by U.S. President Donald Trump for Iran to reopen the Strait of Hormuz.
Gold fell in spot transactions by 0.2% to $4638.30 per ounce, while U.S. gold futures for June delivery dropped 0.4% to $4664.
Comments from Ilya Spivak on Market Movements
Ilya Spivak, head of global macroeconomic analysis at the "Tasty Live" derivatives trading platform, stated: "Everyone is on edge to see the outcome of these sharp statements made by Trump over the past few days," according to Reuters.
This reflects the cautious sentiment in precious metals markets ahead of the deadline.
Iran's Position and Reactions to Trump's Threats
Iran has rejected reopening the Strait of Hormuz and accepting a ceasefire agreement on the eve of Trump's deadline.
Tehran confirmed that it seeks a permanent end to the war with the United States and Israel, while Trump warned that Iran could be "wiped out" if it does not comply with his demands before the deadline on Tuesday evening.
Oil Prices Rise as Trump Escalates Rhetoric Against Iran
Oil prices continued to gain, stabilizing above $110 per barrel as Trump's rhetoric against Iran intensified.
This sharp increase has exacerbated fears of global inflation, increasing volatility in financial markets and precious metals.
The Impact of Inflation and Interest Rates on Gold
Although gold typically benefits during periods of inflationary pressure, rising interest rates diminish its appeal as a non-yielding asset.
According to the "Fed Watch" tool from the CME Group, markets do not widely foresee any chance of interest rate cuts by the U.S. Federal Reserve this year.
Investors Monitoring Fed Meeting Minutes and Inflation Data
Investors are awaiting the release of the March Federal Reserve monetary policy meeting minutes tomorrow, Wednesday, along with U.S. inflation data such as personal consumption expenditures and the consumer price index, which are expected to be released later this week.
This data will directly influence investors' decisions and the prices of gold and precious metals.
Other Precious Metal Prices Today
Other precious metals saw declines in spot transactions, with silver down 0.8% to $72.19 per ounce, platinum falling 1% to $1959.82, and palladium decreasing 0.6% to $1475.93, continuing to be affected by geopolitical tensions and interest rates.
