Gold steady as Trump's Iran deadline keeps markets cautious

Gold prices steadied on ‌Tuesday, as investors remained cautious ahead of a deadline set by U.S. President Donald Trump for reopening the Strait of Hormuz, a key flashpoint in the Iran war.

Spot gold slipped 0.1% to $4,640.93 per ounce by 0327 GMT, while ​U.S. gold futures for June delivery fell 0.4% to $4,666.70.

"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.

Iran said ​on Monday it wanted a lasting end to the war with the U.S. and Israel and pushed back against pressure to 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.

Oil prices extended gains, holding above $110 a barrel as Trump raised his rhetoric against Iran.

The surge in oil prices has fuelled inflation ‌concerns. ⁠While gold typically benefits during periods of inflationary pressure, higher interest rates reduce its appeal as a non‑yielding asset.

Cleveland Fed President Beth Hammack and Chicago Fed President Austan Goolsbee both see inflation as a far bigger problem than employment, underscoring their support for maintaining tighter monetary ​policy.

Markets widely see ​no chance of a ⁠Fed rate cut this year, per CME's FedWatch tool. 

Investors now await the minutes of the Fed's March policy meeting on Wednesday, as well as U.S. inflation indicators, including ​Personal Consumption Expenditures (PCE) data and the Consumer Price Index (CPI), later this week.

"Last ​year, gold ⁠went 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.

Spot silver fell 0.9% to $72.17 per ounce, platinum shed 1.1% to $1,958.75 and palladium lost ​0.5% to $1,478.49.