Gold price wavers as traders weigh prospects of Iran war breakthrough

Gold fluctuated as traders assessed the possibility of a breakthrough in the Iran war, while diplomatic efforts push for a truce to the month-long conflict.

Bullion swung between small gains and losses in light trading after the Easter holiday, with several markets in Europe and Asia closed.

US allies are reportedly pressing for a last-minute deal with Iran, as President Donald Trump extended his deadline to Tuesday for Tehran to reopen the Strait of Hormuz. Axios reported that Pakistan, Egypt and Turkey are pushing to secure a potential ceasefire — lasting about 45 days.

Gold has fallen more than 10% since the conflict started at the end of February, as spiking energy prices stoke inflation fears and dim the prospects for interest rate cuts that typically benefit the non-yielding precious metal. Bullion’s haven appeal has also been weakened by the need for investors to liquidate positions to cover other losses.

“People are taking chips off the table to protect their assets,” said Robert Gottlieb, a market commentator and former precious metals trader at JPMorgan Chase & Co.

A spike in US gasoline prices will be on full display when key US inflation data is released this week. Economists are forecasting a 1% increase in the consumer price index for March, which would be the sharpest one-month advance since 2022. The war has added more than $1 per gallon to prices at the pump.

Spot gold slipped 0.1% to $4,683.70 an ounce as of 10:52 a.m. in New York. Silver declined 0.2%. Platinum and palladium both declined. The Bloomberg Dollar Spot Index, a gauge of the US currency, fell 0.2%.

(By Yihui Xie and Yvonne Yue Li)