Spot gold dropped 0.7% to $4,644.74 per ounce by 00:04 ET (04:04 GMT), while Gold Futures eased 0.2% to 4.672.75/oz. The pullback came after bullion had climbed 4% over the prior week, having given back much of those gains on the last trading session on Thursday.
Market focus centered on a sharp ultimatum from U.S. President Donald Trump, who warned that Iran must restore shipping through the Strait of Hormuz by 8 p.m. Eastern Time on Tuesday or face "severe consequences." In a Truth Social post, Trump further signaled potential targets by saying, "Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran," indicating that civilian infrastructure could be at risk if tanker traffic is not resumed.
Complicating the picture, an Axios report late Sunday said the U.S., Iran, and regional mediators were in talks over terms for a proposed 45-day ceasefire that could pave the way for a broader agreement to end the conflict. The juxtaposition of an ultimatum and reports of ceasefire negotiations created uncertainty that weighed on safe-haven demand for gold.
The strategic importance of the Strait of Hormuz underlies the market reaction: the waterway handles roughly one-fifth of global oil shipments. Disruptions there have contributed to oil prices rising sharply this year, with prices more than doubling, a factor that has added to inflationary pressure.
Higher oil has complicated gold’s outlook by reinforcing expectations that U.S. interest rates may remain elevated for longer, thereby limiting bullion’s upside potential. Investors were also absorbing U.S. payrolls data, released while many markets were closed for the Good Friday holiday, which showed stronger-than-expected resilience in the labor market.
Currency moves were modest but supportive of the softer gold tone: the US Dollar Index ticked up 0.1% in Asian trading on Monday.
Other precious metals moved lower alongside gold. Silver fell 0.6% to $72.58 per ounce, while platinum was down 0.4% at $1,985.60/oz.
Market context:
- Gold slipped after a weekly advance as geopolitical and economic signals diverged.
- Energy supply risks tied to the Strait of Hormuz continue to influence inflation expectations and interest-rate outlooks.
- Domestic U.S. labor data and a slightly firmer dollar contributed to downward pressure on bullion.