Gold Swings Ahead of Trump's Ultimatum to Iran
Gold prices fluctuated around $4,650 per ounce on Tuesday, moving cautiously as the market braced for US President Donald Trump's ultimatum to Iran. The deadline calls for Iran to reopen the Strait of Hormuz and agree to a ceasefire, or face military retaliation.
Amid the threats, hostilities have reportedly escalated. Tehran blamed explosions on Kharg Island and the Yahya Abad railway bridge in Kashan, while declaring it would retaliate "outside the region" if the US violates its "red lines."
However, macroeconomic factors continue to dampen gold's appetite. The Iran crisis has strengthened the US dollar and prompted market participants to bet against a Federal Reserve interest rate cut, reducing gold's appeal. Gold remains about 12% below pre-conflict levels after posting its worst monthly decline since 2008 in March.
On the official demand side, Chinese central bank purchases have been a major boost to sentiment: monetary authorities added 160,000 troy ounces in March, the largest increase in more than a year, providing limited support as the market awaits certainty on geopolitical direction and US monetary policy. (gn)
Source: Newsmaker.id
