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 regarding the Strait of Hormuz.

Apr. 7, 2026 at 6:21am

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An extreme close-up of complex, industrial banking equipment and machinery, conveying a sense of financial security and institutional power through its heavy, textured, and cinematic visual style.As global tensions escalate, the machinery powering the world's financial systems remains a steadfast, if imposing, presence.Chicago Today

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. Oil prices extended gains, holding above $110 a barrel as Trump raised his rhetoric against Iran. The surge in oil prices has fueled inflation concerns, which could impact the Federal Reserve's monetary policy decisions.

Why it matters

The situation with Iran and the Strait of Hormuz is a major geopolitical and economic issue that has significant implications for global energy markets and the broader economy. Gold and other precious metals are seen as safe-haven assets during periods of heightened uncertainty, so their performance is closely watched by investors.

The details

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. Iran said 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. The surge in oil prices has fueled inflation concerns, which could lead the Federal Reserve to maintain tighter monetary policy.

  • Trump set a Tuesday night deadline for Iran to reach a deal regarding the Strait of Hormuz.

The players

Donald Trump

The President of the United States who set a deadline for Iran regarding the Strait of Hormuz.

Iran

A country involved in a conflict with the U.S. and Israel over the Strait of Hormuz, a key global oil chokepoint.

Beth Hammack

The President of the Federal Reserve Bank of Cleveland who sees inflation as a bigger problem than employment.

Austan Goolsbee

The President of the Federal Reserve Bank of Chicago who also sees inflation as a far bigger problem than employment.

Ilya Spivak

The head of global macro at Tastylive, a financial derivatives trading platform, who commented on the gold market's outlook.

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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

What’s next

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

The takeaway

The ongoing tensions between the U.S. and Iran over the Strait of Hormuz, combined with concerns about rising inflation, are creating significant uncertainty in global financial markets. This is driving investors to seek safe-haven assets like gold, but the Federal Reserve's monetary policy response will be a key factor in determining the precious metal's performance going forward.