Gold prices remained largely stable on Tuesday as investors exercised caution amid ongoing tensions in the Middle East, following reports that U.S. President Donald Trump said he believes the war with Iran could end soon.
Spot gold fell 1% to $5,131.24 per ounce at 00:51 GMT, while U.S. gold futures for April delivery rose 0.7% to $5,141.40.
The US Dollar declined 0.4%, making gold priced in dollars cheaper for holders of other currencies.
On Monday, Trump predicted a quick end to the war—earlier than his initial estimate of four weeks—even as Iranian hardliners rallied behind the country’s new supreme leader Mojtaba Khamenei, indicating they are unlikely to back down soon.
The conflict has led to the closure of the Strait of Hormuz, a vital passage for about one-fifth of global oil and liquefied natural gas shipments. The shutdown halted oil tanker traffic for more than a week and forced producers to suspend production as storage facilities filled up, pushing energy prices higher.
Rising energy costs have intensified concerns about inflation and reduced expectations that the Federal Reserve will cut interest rates in the near term.
Gold is widely viewed as a hedge against inflation, while lower interest rates typically increase its appeal as a safe-haven asset.
Markets are now awaiting the U.S. Consumer Price Index (CPI) for February, scheduled to be released on Wednesday, as well as the Personal Consumption Expenditures (PCE) index—the Federal Reserve’s preferred inflation gauge—on Friday.
Among other precious metals:
• Silver rose 0.4% to $87.32 per ounce.
• Platinum fell 0.6% to $2,168.52 per ounce.
• Palladium declined 0.1% to $1,689.11 per ounce.
Source: Reuters
