Gold prices steadied Tuesday as investors eyed a deadline set by U.S. President Donald Trump for reopening the Strait of Hormuz.<\/p>\n
Shannon Stapleton | Reuters<\/p>\n
Gold\u00a0prices steadied\u00a0on Tuesday, as investors\u00a0remained\u00a0cautious ahead of a deadline\u00a0set by\u00a0U.S. President Donald Trump\u00a0for\u00a0reopening the Strait of Hormuz, a key flashpoint in the Iran war.<\/p>\n
Spot\u00a0gold<\/a>\u00a0slipped 0.1% to\u00a0$4,640.93\u00a0per ounce by 0327\u00a0GMT, while U.S.\u00a0gold\u00a0futures<\/a>\u00a0for June delivery fell 0.4%\u00a0to $4,666.70.<\/p>\n “Everyone is in a mode where we’re waiting for whatever the outcome is of this diatribe that the President has been on for the past several days,” said Ilya Spivak, head of global macro at Tastylive, a financial derivatives trading platform.<\/p>\n Iran said on Monday it wanted a lasting end to the war with the U.S. and Israel and pushed back against\u00a0pressure\u00a0to reopen the Strait of Hormuz, while Trump warned the country could be “taken out” if it did not meet his Tuesday night deadline to reach a deal.<\/p>\n Oil prices extended\u00a0gains, holding\u00a0above $110\u00a0a\u00a0barrel as Trump\u00a0raised\u00a0his rhetoric against\u00a0Iran.\u00a0<\/p>\n The surge in oil prices has fueled inflation concerns. While\u00a0gold\u00a0typically benefits during periods of inflationary pressure, higher interest rates reduce its appeal as a non\u2011yielding asset.<\/p>\n Cleveland\u00a0Fed\u00a0President Beth Hammack and Chicago Fed President Austan Goolsbee both see inflation as a far bigger problem than employment,\u00a0underscoring\u00a0their support for\u00a0maintaining tighter\u00a0monetary policy.<\/p>\n Markets widely see no\u00a0chance\u00a0of a Fed rate cut this year,\u00a0per CME’s\u00a0FedWatch tool.<\/p>\n Investors\u00a0now await\u00a0the minutes of the\u00a0Fed’s\u00a0March policy meeting on\u00a0Wednesday, as well as\u00a0U.S. inflation indicators, including Personal Consumption Expenditures (PCE) data\u00a0and the\u00a0Consumer Price Index (CPI) later this week.<\/p>\n “Last year,\u00a0gold\u00a0went off on its own and became its own speculative narrative. We’re likely to see that re-emerge this year after whatever sort of risk washes off here… ultimately by the end of the year, we could end up closer to $5,500 and $6,000,” Spivak added.<\/p>\n Spot silver<\/a>\u00a0fell 0.9% to $72.17 per ounce, platinum<\/a>\u00a0shed 1.1%\u00a0to $1,958.75\u00a0and palladium<\/a>\u00a0lost 0.5%\u00a0to $1,478.49.<\/p>\n