Trump's Ultimatum Shakes Markets, Gold Remains Under Pressure
Gold prices weakened to US$4,620/oz on Tuesday (April 7), erasing early gains and extending their decline for a third consecutive session. The decline occurred as escalating US-Iran tensions—including President Donald Trump's ultimatum to Tehran and reports of explosions in Iran—were insufficient to sustain safe-haven demand.
Trump set an 8:00 PM ET deadline for a deal that would include reopening the Strait of Hormuz and a ceasefire, along with a stern warning of consequences if demands were not met. Iran has vowed to retaliate "outside the region" if the US violates its "red lines." Despite the geopolitical tensions, gold remains about 12% below pre-conflict levels after posting its worst monthly decline since 2008 in March, when the crisis strengthened the dollar and dampened expectations of a Fed rate cut—a combination that pressured the non-yielding metal.
One support came from official demand: China's central bank added 160,000 troy ounces of gold reserves in March, the largest purchase in more than a year, signaling that reserve diversification is still underway despite price volatility.
Source: Newsmaker.id
