Gold Steady as Trump's Iran Deadline Keeps Markets Cautious

Investors remain on edge ahead of a key deadline set by the U.S. president over the Strait of Hormuz conflict.

Apr. 7, 2026 at 3:50am

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An extreme close-up of a complex array of gears, levers, and metal components, representing the intricate financial infrastructure that supports the global energy trade.As tensions escalate over the strategic Strait of Hormuz, the financial machinery underpinning global energy markets remains under intense scrutiny.Chicago Today

Gold prices held steady on Tuesday as investors remained cautious ahead of a deadline set by U.S. President Donald Trump for Iran to reach a deal over the Strait of Hormuz, a key flashpoint in the ongoing conflict between the two countries. The surge in oil prices due to the geopolitical tensions has fueled inflation concerns, though gold's appeal as a non-yielding asset has been reduced by the prospect of higher interest rates.

Why it matters

The standoff between the U.S. and Iran over the strategic Strait of Hormuz has significant implications for global energy markets and the broader economy. Any disruption to oil shipments through the strait could send energy prices soaring, exacerbating inflationary pressures and potentially prompting more aggressive monetary policy tightening by the Federal Reserve.

The details

Gold prices slipped slightly on Tuesday, with spot gold down 0.1% to $4,640.93 per ounce and U.S. gold futures for June delivery falling 0.4% to $4,666.70. Investors are in a 'wait-and-see' mode ahead of the outcome of the latest developments in the U.S.-Iran conflict, according to Ilya Spivak of Tastylive. Iran has pushed back against pressure to reopen the Strait of Hormuz, while Trump has warned the country could face military action if it does not meet his Tuesday night deadline. Oil prices have extended gains, holding above $110 a barrel, as Trump has ratcheted up his rhetoric against Iran.

  • On Monday, Iran said it wanted a lasting end to the war with the U.S. and Israel.
  • Trump set a Tuesday night deadline for Iran to reach a deal over the Strait of Hormuz.

The players

Donald Trump

The President of the United States who has set a deadline for Iran to reach a deal over the Strait of Hormuz.

Iran

The Middle Eastern country that has pushed back against pressure to reopen the Strait of Hormuz, a key strategic waterway.

Ilya Spivak

The head of global macro at Tastylive, a financial derivatives trading platform, who commented on the cautious mood among investors.

Beth Hammack

The President of the Federal Reserve Bank of Cleveland who sees inflation as a far bigger problem than employment, underscoring the central bank's support for tighter monetary policy.

Austan Goolsbee

The President of the Federal Reserve Bank of Chicago who also views inflation as a more pressing concern than employment, in line with the Fed's hawkish stance.

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What they’re saying

“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.”

— Ilya Spivak, Head of Global Macro, Tastylive

“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.”

— Ilya Spivak, Head of Global Macro, Tastylive

What’s next

Investors will be closely watching the minutes of the Federal Reserve's March policy meeting on Wednesday, as well as key U.S. inflation indicators, including Personal Consumption Expenditures (PCE) data and the Consumer Price Index (CPI), later this week.

The takeaway

The standoff between the U.S. and Iran over the Strait of Hormuz is keeping global financial markets on edge, with the potential for further escalation and disruption to energy supplies fueling inflation concerns. Gold's appeal as a safe-haven asset may be limited by the prospect of higher interest rates, though the metal could still see a resurgence as a speculative investment if geopolitical risks subside.