Gold prices edged lower during Tuesday’s Asian session as a firmer United States dollar and escalating geopolitical tensions weighed on the precious metal ahead of a key deadline in the Iran conflict.
By 3:25 pm AEST (5:25 am GMT), prices were down 0.1% at US$4,643.59 per ounce.
The precious metal has lacked clear direction in recent sessions, with traders balancing safe-haven demand against the strength of the U.S. dollar.
The greenback has attracted renewed buying interest as investors seek safety amid rising uncertainty linked to U.S. President Donald Trump and the escalating Middle East conflict.
Hopes for a ceasefire between the United States and Iran have diminished after Trump sharpened his rhetoric, reiterating a deadline to strike Iran’s energy and transport infrastructure if the Strait of Hormuz is not reopened.
Trump stated that Iran “can be taken out in one night, and that might be tomorrow night”.
At the same time, the president said that the latest proposal for a U.S. ceasefire with Iran is “not good enough”. Iran has rejected the proposal, instead calling for a permanent end to the conflict, according to state-run media.
With uncertainty surrounding the outcome of negotiations and the looming deadline, gold traders have largely remained on the sidelines, keeping prices rangebound.
In addition to geopolitical factors, expectations for a more hawkish stance from the Federal Reserve have further supported the U.S. dollar.
