Gold Pares Some Losses After Trump Delays Strike on Iran
Gold prices pared some losses on Monday (March 23) after US President Donald Trump said Washington was holding "good and productive" talks with Iran and ordered a temporary suspension of planned military strikes on Iranian power plants and energy infrastructure. This statement provided a brief respite for markets that had previously been under intense pressure due to concerns of an escalating war.
At 9:55 a.m. US time (13:55 GMT), spot gold fell 0.9% to $4,447.18 per ounce, while gold futures fell 2.8% to $4,481.39 per ounce. Spot gold had previously weakened to its lowest level since late December before paring losses.
Meanwhile, spot silver rose 1.2% to $68.6065 per ounce, reflecting a more positive market response to certain precious metals as geopolitical tensions appeared to ease somewhat.
In a social media post, Trump declared the past two days of talks to arrange a “complete and total resolution” of hostilities “productive.” Referring to the “tenor and tone” of the talks, which will continue throughout the week, Trump said he had instructed the Pentagon to postpone for five days “all” attacks on Iranian power plants and energy infrastructure.
Trump had previously threatened to launch new attacks on Iranian power infrastructure and power plants if Tehran did not reopen the Strait of Hormuz by Monday evening. The narrow strait south of Iran—through which about a fifth of global shipping passes—has become a major flashpoint for the conflict because disruptions there directly impact energy supplies and drive up global inflation.
Iran has warned it will target Israeli power facilities and infrastructure supplying US bases in the Persian Gulf if Washington attacks its energy grid. However, a report cited by the Wall Street Journal said Iran’s Fars news agency, citing sources, said there had been no direct or indirect contact with the US—contradicting Trump’s claim of “productive” talks.
Newsmaker Bottom Line: The five-day pause provides space for de-escalation and helps gold trim losses, but Iran’s denials keep the market wary. As long as the Hormuz issue and the risk of an energy attack remain unaddressed, gold's direction remains vulnerable to sharp swings.
Source: Newsmaker.id
