FX.co ★ Gold Edges Higher as Iran Deadline Looms

Gold edged up to $4,680 per ounce on Tuesday, modestly rebounding after two straight sessions of declines, as markets adopted a cautious wait-and-see posture ahead of Trump’s ultimatum to Iran. The US president has demanded that Iran reopen the Strait of Hormuz and agree to a ceasefire or face military retaliation. Despite the heightened geopolitical tensions, bullion remains well below its mid-March peak of $5,000. The ongoing Iran conflict has driven energy prices higher, amplifying inflation concerns and prompting investors to reassess the interest-rate outlook. Markets now expect central banks to delay rate cuts, or even resume tightening. The Federal Reserve, once anticipated to ease policy before the war, is now seen holding rates steady, while traders are pricing in two Bank of England hikes this year and three from the European Central Bank. This evolving monetary policy backdrop has eroded some of gold’s traditional safe-haven appeal.