{"id":126642,"date":"2026-05-04T15:29:00","date_gmt":"2026-05-04T11:29:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=126642"},"modified":"2026-05-04T13:29:07","modified_gmt":"2026-05-04T09:29:07","slug":"gold-stuck-in-limbo-iran-war-inflation-fears-and-hawkish-central-banks-crush-bullions-safe-haven-shine","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/gold-stuck-in-limbo-iran-war-inflation-fears-and-hawkish-central-banks-crush-bullions-safe-haven-shine\/05\/04\/market-updates\/","title":{"rendered":"Gold Stuck in Limbo: Iran War Inflation Fears and Hawkish Central Banks Crush Bullion&#8217;s Safe-Haven Shine"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Prices steady:<\/strong> Spot gold held at $4,612.98\/oz, while gold futures slipped 0.4% to $4,624.14\/oz.<\/li>\n\n\n\n<li><strong>Two months of pain:<\/strong> Gold is nursing back-to-back monthly losses as inflation fears overshadow safe-haven appeal.<\/li>\n\n\n\n<li><strong>Other metals firmer:<\/strong> Spot silver rose 0.4% to $75.6945\/oz, while spot platinum gained 0.9% to $2,010.0\/oz.<\/li>\n\n\n\n<li><strong>Trump&#8217;s Hormuz operation:<\/strong> The president announced an effort to help commercial vessels pass through the strait, with U.S. Central Command confirming additional military deployments.<\/li>\n\n\n\n<li><strong>Iran ceasefire warning:<\/strong> Tehran warned that any U.S. intervention in Hormuz would be considered a violation of the existing truce.<\/li>\n\n\n\n<li><strong>14-point plan response:<\/strong> Iran&#8217;s Foreign Ministry confirmed receiving the U.S. response to its proposal to reopen Hormuz and end the war.<\/li>\n\n\n\n<li><strong>No quick path to peace:<\/strong> Analysts see no clear near-term resolution, keeping oil prices elevated and inflation worries in focus.<\/li>\n\n\n\n<li><strong>Kashkari opens door to hikes:<\/strong> The Minneapolis Fed President did not rule out potential rate increases due to inflation risks.<\/li>\n\n\n\n<li><strong>Global central banks turn hawkish:<\/strong> The BOJ, ECB, and BOE all flagged potential hikes last week, while the RBA is expected to raise rates Tuesday.<\/li>\n<\/ul>\n\n\n\n<p>Gold prices steadied during Asian trading on Monday, with the yellow metal finding little relief from the persistent uncertainty surrounding the Middle East war and the trajectory of global interest rates.<\/p>\n\n\n\n<p>The yellow metal is nursing two consecutive months of losses, as safe-haven demand stemming from the U.S.-Iran war has been largely overshadowed by mounting concerns over its inflationary effects.<\/p>\n\n\n\n<p>Spot gold held steady at $4,612.98 per ounce by 00:18 ET (04:18 GMT), while gold futures fell 0.4% to $4,624.14 per ounce.<\/p>\n\n\n\n<p>Other precious metals traded in positive territory. Spot silver rose 0.4% to $75.6945 per ounce, while spot platinum advanced 0.9% to $2,010.0 per ounce.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Iran Uncertainty Lingers as Trump Launches Hormuz Operation<\/h2>\n\n\n\n<p>U.S. President Donald Trump on Sunday evening announced an operation aimed at assisting commercial vessels in navigating through the Strait of Hormuz.<\/p>\n\n\n\n<p>Trump did not provide clear details on what the operation would entail. Separately, U.S. Central Command said the operation would involve additional military deployments \u2014 including vessels and personnel \u2014 across the Middle East.<\/p>\n\n\n\n<p>Iranian officials warned that any U.S. intervention in Hormuz would be considered a violation of the tenuous existing ceasefire. In a separate development, Iran&#8217;s Foreign Ministry said it had received Washington&#8217;s response to its 14-point plan to reopen Hormuz and bring the war to a close, according to state media reports.<\/p>\n\n\n\n<p>However, there appeared to be no clear near-term pathway toward ending the conflict and reopening Hormuz \u2014 a trend that is expected to keep oil prices elevated and inflation concerns squarely in play.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fed&#8217;s Kashkari Doesn&#8217;t Rule Out Rate Hikes<\/h2>\n\n\n\n<p>Minneapolis Federal Reserve President Neel Kashkari said on Sunday that a prolonged Iran war presented greater inflation and economic risks.<\/p>\n\n\n\n<p>Kashkari also cautioned that uncertainty over the war was limiting the Fed&#8217;s ability to provide forward guidance on interest rates, and did not rule out the possibility of rate hikes given the inflationary risks at play.<\/p>\n\n\n\n<p>Reports indicated that Kashkari was among an unusually large number of policymakers who dissented against the Fed&#8217;s easing bias during last week&#8217;s meeting, amid growing concerns over rising energy-fueled inflation.<\/p>\n\n\n\n<p>Beyond the Fed, several other major central banks have either signaled potential rate hikes or have already begun raising rates in response to the Iran crisis. The Bank of Japan, European Central Bank, and Bank of England all flagged potential hikes last week, while the Reserve Bank of Australia is widely expected to raise rates on Tuesday.<\/p>\n\n\n\n<p>Higher rates bode poorly for non-yielding assets such as gold, given that they increase the opportunity cost of investing in the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Prices steady: Spot gold held at $4,612.98\/oz, while gold futures slipped 0.4% to $4,624.14\/oz. Two months of pain: Gold is nursing back-to-back monthly losses as inflation fears overshadow safe-haven appeal. Other metals firmer: Spot silver rose 0.4% to $75.6945\/oz, while spot platinum gained 0.9% to $2,010.0\/oz. Trump&#8217;s Hormuz operation: The president announced an &hellip;<\/p>\n","protected":false},"author":9,"featured_media":94364,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,37,36],"tags":[],"class_list":["post-126642","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/126642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=126642"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/126642\/revisions"}],"predecessor-version":[{"id":126643,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/126642\/revisions\/126643"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/94364"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=126642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=126642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=126642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}