06.04.202623:54:14UTC+00Gold Steadies as US-Iran in Focus

Gold held near $4,650 per ounce on Tuesday after two consecutive sessions of declines, as investors focused on President Donald Trump’s threat to strike Iranian civilian infrastructure if his demands are not met, intensifying worries about the economic fallout of a drawn-out conflict. Trump warned he could target Iranian power plants and bridges if his conditions — including the reopening of the Strait of Hormuz — are not fulfilled by 8 p.m. Eastern Time on Tuesday. Those remarks overshadowed indications that the US and Iran may be edging closer to a ceasefire agreement through mediators. Despite its role as a traditional safe haven, gold is still down about 12% since the conflict began, as surging energy prices linked to the Iran war have stoked inflation concerns and raised the odds that central banks will postpone interest rate cuts or even implement further hikes. Market expectations now point to the Federal Reserve holding rates steady for the remainder of the year, a notable shift from earlier forecasts that had penciled in two cuts.