Gold Holds Below $3,400/oz as Markets Weigh Trump Threats, Israel-Iran Conflict

Gold prices remained steady in Asian trading Tuesday, holding below the $3,400 per ounce mark as traders digested mixed signals around the Israel-Iran conflict and awaited clarity on U.S. Federal Reserve policy.

Spot gold inched up 0.2% to $3,392.25 an ounce, while August gold futures edged down 0.2% to $3,410.70 by 01:12 ET (05:12 GMT). The metal had surged past $3,450 on Monday before retreating sharply amid reports of potential ceasefire talks.

Geopolitical Tensions Offer Support, But Uncertainty Lingers

Volatility in bullion markets was driven by conflicting developments in the Middle East. While initial reports suggested Iran might be open to a ceasefire, Tehran later rejected any truce while under Israeli fire. Heightening tensions, U.S. President Donald Trump warned that “everyone should immediately evacuate Tehran,” sparking fears of deeper U.S. involvement.

Despite Trump’s warnings, White House officials clarified that the U.S. does not plan to intervene militarily. However, according to Axios, U.S. and Iranian officials are quietly exploring renewed dialogue on both a ceasefire and Iran’s nuclear program. No formal meeting date has been confirmed.

Market Outlook Turns Cautious

Gold’s rally has lost steam amid the uncertainty. Analysts at Citi warned that prices could slip below $3,000 per ounce in the coming quarters as safe-haven demand wanes and investor interest begins to fade.

Fed Decision Looms Over Broader Metals Market

The broader metals complex remained under pressure ahead of the Federal Reserve’s upcoming policy announcement on Wednesday. While no rate changes are expected, markets are watching closely for forward guidance from Fed Chair Jerome Powell.

In other metals trading:

• Platinum futures dipped 0.1% to $1,239.90/oz, continuing a modest pullback after recent strong gains.
• Silver futures rose 0.2% to $36.503/oz.
• Copper prices also softened, with London futures down 0.4% to $9,674.75 per ton and U.S. contracts holding steady at $4.8163 per pound.

A softer dollar provided little support to metals, as traders remained cautious ahead of the Fed’s decision and the ongoing geopolitical uncertainty in the Middle East.