Gold holds ground while Middle East tensions push oil higher

April 7, 2026 (MLN): Gold prices remained largely stable on Tuesday as investors approached a tense geopolitical deadline. U.S. President Donald Trump had set a timeline for reopening the Strait of Hormuz.

Currently, spot gold is down 0.51% to $4,651.29 an ounce as of [9:28 am] PST, according to data reported by Mettis Global.

Iran signaled its desire for a long-term resolution to conflicts with the U.S. and Israel, resisting external pressure to reopen the vital shipping route, according to CNBC.

Meanwhile, Trump intensified warnings that Iran could face severe consequences if a deal was not reached by his set deadline.

The geopolitical uncertainty contributed to a continued rise in oil prices, which held above $111 per barrel as markets reacted to Trump’s stern rhetoric.

Rising crude prices have stoked fears of higher inflation, which traditionally benefits gold as a safe-haven asset. However, elevated interest rates have tempered gold’s appeal, given its lack of yield.

Attention is now shifted towards the U.S Federal Reserve, awaiting the release of the minutes from its March policy meeting on Wednesday. Market participants will also monitor key U.S. inflation metrics, including the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE), scheduled for later this week.

Other precious metals mirrored mixed trends: spot silver dipped 0.9% to $72.17 per ounce, platinum dropped 1.1% to $1,958.75, and palladium decreased 0.5% to $1,478.49.

Copyright Mettis Link News