Key Takeaways

• Bullion under pressure: Spot gold slipped 0.1% to $4,593.04 per ounce, while gold futures eased 0.1% to $4,606.31 — both near one-month lows.
• Dollar steals the show: Safe-haven buyers have flocked to the greenback rather than gold amid the Iran war uncertainty.
• Mixed metals picture: Spot silver rose 0.7% to $73.6135/oz, while spot platinum fell 0.3% to $1,937.75/oz — both still nursing recent steep losses.
• Blockade looms large: Trump has reportedly directed aides to prepare for a prolonged naval blockade of Iran to choke off oil exports.
• Iran proposal rejected: The president rebuffed Tehran’s offer to reopen Hormuz, given its call to postpone nuclear talks.
• Inflation-rate dilemma: Fears that oil-driven inflation will force hawkish central bank moves continue to dampen gold’s appeal.
• Fed in focus: The central bank is widely expected to hold rates Wednesday, with growing bets it will stay on hold for the remainder of 2026.
• Big week for central banks: Decisions from the ECB and Bank of England also loom.

Gold prices steadied near a one-month low on Wednesday as bullion demand remained largely suppressed by lingering uncertainty surrounding the Iran war, while anticipation of the Federal Reserve’s meeting also weighed on sentiment.

The yellow metal has logged steep losses this week as safe-haven flows continued to favor the U.S. dollar, while elevated oil prices — fueled by expectations of a prolonged U.S.-Iran standoff — also rattled markets.

Spot gold fell 0.1% to $4,593.04 per ounce by 02:09 ET (06:09 GMT), while gold futures slipped 0.1% to $4,606.31 per ounce.

Other precious metals traded in mixed fashion but were also nursing notable losses from recent sessions. Spot silver rose 0.7% to $73.6135 per ounce, while spot platinum fell 0.3% to $1,937.75 per ounce.

Trump Bracing for Extended Iran Blockade — WSJ

U.S. President Donald Trump has instructed aides to prepare for a prolonged naval blockade against Iran, the Wall Street Journal reported on Tuesday evening.

The move is aimed at ratcheting up pressure on Iran’s economy by severing its ability to export oil, in a further effort to push Tehran toward a deal.

Reports earlier this week revealed Trump was largely dissatisfied with Iran’s proposal to reopen the Strait of Hormuz and end the war — chiefly because the offer called for postponing discussions on Iran’s nuclear activities.

A prolonged naval blockade is likely to provoke further hostility from Iran, which could retaliate by keeping the Strait of Hormuz shuttered for the foreseeable future. Such a scenario stands to deepen the disruption of oil flows across the Middle East.

Inflation Fears Continue to Weigh on Gold

Concerns over oil-driven inflation — which could in turn prompt more hawkish messaging from global central banks — have been a significant drag on gold prices since late February. Markets have worried that higher interest rates will raise the opportunity cost of holding non-yielding assets such as gold, largely overshadowing bullion’s traditional safe-haven appeal.

“For gold to regain stronger traction, markets may need to see either a pullback in oil prices or signs that geopolitical tensions are easing enough to revive dovish Fed pricing,” OCBC analysts noted in a research piece.

Fed Meeting in the Spotlight

Investor attention is also locked on the conclusion of the Fed’s two-day meeting later on Wednesday, with the central bank widely expected to leave interest rates unchanged.

Wednesday’s decision arrives amid mounting bets that the Fed will keep rates on hold for the rest of 2026, particularly in light of intensifying inflation pressures stemming from the Iran war.

Beyond the Fed, interest rate decisions from the European Central Bank and the Bank of England are also on tap this week.