Gold Falls for 2nd Session

Gold prices fell toward $4,700 an ounce on Tuesday, the lowest level in about a week, pressured by a stronger dollar as investors weighed uncertainty around US–Iran talks and the Senate confirmation hearing of Federal Reserve Chair nominee Kevin Warsh. It remains unclear whether Iran will join the US for a second round of negotiations ahead of Wednesday’s ceasefire deadline, while the Strait of Hormuz continues to be largely shut. Meanwhile, rising oil prices have reignited inflation concerns, lifting both the dollar and Treasury yields and weighing further on bullion. In addition, Kevin Warsh advocated a new framework for the Fed to deal with persistent inflation, while failing to offer further details. Since the start of the Iran conflict, gold has dropped more than 8%, as geopolitical risks are offset by resilient US consumer activity and the Fed’s cautious policy stance.

Gold decreased 2.02% to 4723.48 USD/t.oz

Gold hovered below $4,800 an ounce on Tuesday, struggling for momentum as investors monitored potential US-Iran negotiations amid escalating tensions. US President Donald Trump declared he "expects to be bombing" Iran once the two-week ceasefire expires on Wednesday, even as he claimed Tehran could still secure a "great deal" if it attends talks in Pakistan, despite Iran’s denial of such plans. The Middle East conflict has triggered a historic energy supply shock, intensifying inflationary pressures and raising the likelihood of central bank rate hikes, which have dampened gold’s appeal. Meanwhile, strong US economic data further reduced safe-haven demand: retail sales surged 1.7% in March, beating expectations of 1.4%, with broad-based gains across nearly all categories, likely buoyed by larger-than-usual tax refunds. Since the Iran war began, gold has plunged over 8%, as geopolitical risks compete with resilient US consumer activity and the Federal Reserve’s cautious monetary stance.