Gold Drops Amid Iran Deadline Uncertainty

2026-04-07 14:18 By Joana Ferreira 1 min. read

Gold dropped to $4,620 per ounce on Tuesday, wiping out early gains and extending losses for a third straight session.

The decline came as escalating Iran-US tensions, marked by President Trump’s ultimatum to Tehran and reports of explosions in Iran, failed to sustain safe-haven demand.

Trump warned Iran that its "whole civilization will die" unless a "less radicalized" regime agrees to US terms by 8:00 pm ET, including reopening the Strait of Hormuz and a ceasefire.

Iran vowed "beyond-the-region" retaliation if the US crosses its "red lines." Despite the turmoil, gold remains 12% below pre-conflict levels after its worst monthly drop since 2008 in March, as the crisis has strengthened the US dollar and dampened expectations of Federal Reserve rate cuts, further weighing on gold.

Meanwhile, China’s central bank provided a rare boost, adding 160,000 troy ounces of gold in March, its largest purchase in over a year.



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