Gold held above $4,400 per ounce in Tuesday trading, swinging between modest gains and losses as geopolitical signals from the Middle East continued to pull the market in opposing directions.
International spot gold traded at approximately $4,418.36 per ounce, showing a modest daily gain and bouncing slightly from four-month lows, though prices remain well below the highs of early March.
April futures opened at $4,335 per troy ounce on Tuesday, about 1.6% lower than Monday’s close of $4,407.30, before recovering in early trading to cross back above $4,400.
The session’s volatility tracked closely with diplomatic signals out of Tehran. Iran flatly rejected United States President Donald Trump’s assertions that the two sides had been holding productive talks aimed at ending the conflict. Iranian officials dismissed the claims as an attempt to manage financial markets rather than a reflection of any genuine negotiations, leaving uncertainty over the Strait of Hormuz unresolved.
The Iran war entered its 18th day on Tuesday, with gold remaining unexpectedly subdued despite the scale of the conflict, as higher oil prices have raised fears of prolonged inflation, which could push central banks toward keeping interest rates elevated for longer.
Economists note that higher interest rates make dollar assets and bonds more attractive compared with gold, which pays no interest, reducing the metal’s conventional safe-haven appeal in the current environment.
Intraday data for the active gold contract showed prices moving from $4,400 to $4,424 between Monday afternoon and early Tuesday, with the session opening at $4,414.80, reaching a high of $4,450.50 and a low of $4,363.50, with total volume of 7,508 contracts and open interest at 149,406.
Gold’s decline since the Iran war began has erased gains accumulated over the past two months, with the metal down more than 14% since US-Israeli strikes on Iran triggered the conflict on 28 February. Despite the recent pullback, the metal remains substantially above year-ago levels. Gold was trading approximately $1,364 higher than a year ago at the same point in March 2025.
Major bank forecasts remain constructive over the medium term, with JPMorgan projecting prices will reach $6,300 per ounce by the end of 2026 and Deutsche Bank maintaining a $6,000 year-end target.
