FX.co ★ Gold Stalls Below $4,800 Amid Trump’s Iran Threats and Strong US Data

Gold traded just below $4,800 an ounce on Tuesday, lacking clear direction as investors weighed the prospect of US-Iran talks against mounting regional tensions. US President Donald Trump said he “expects to be bombing” Iran once the two-week ceasefire ends on Wednesday, even as he maintained that Tehran could still secure a “great deal” by joining negotiations in Pakistan—an option Iran has publicly denied. The conflict in the Middle East has unleashed a historic shock to global energy supplies, intensifying inflationary pressures and heightening expectations of further central bank rate hikes, both of which have eroded gold’s appeal. At the same time, robust US economic data have further curbed demand for safe-haven assets: retail sales jumped 1.7% in March, topping forecasts of 1.4%, with gains spread across nearly every category and likely supported by larger-than-usual tax refunds. Since the onset of the Iran war, gold has dropped more than 8%, as investors balance elevated geopolitical risk against resilient US consumer spending and the Federal Reserve’s cautious policy stance.