Gold Prices Rebound in Asia Amid Iran War Ceasefire Hopes

Gold prices climbed in Asian trading on Tuesday, recovering slightly after suffering steep losses throughout March. The partial rebound came as investors reacted to reports that U.S. President Donald Trump was weighing an end to military operations against Iran, offering some relief to battered metal markets.

Spot gold gained 1% to reach $5,556.54 per ounce, while gold futures edged up 0.6% to $4,587.01 per ounce. Silver and platinum also posted gains, with silver surging 2.7% to $71.98 per ounce and platinum rising 0.8% to $1,914.85 per ounce.

The uptick followed a Wall Street Journal report indicating Trump was open to winding down the Iran conflict without pursuing a military reopening of the Strait of Hormuz. According to the report, Trump and his advisors concluded that forcing the strait's reopening would extend the campaign beyond its original four-to-six-week timeline and require a significantly more complex operation. Instead, the administration is expected to pursue diplomatic pressure on Tehran and engage Gulf and European allies to lead reopening efforts.

Despite Tuesday's recovery, gold remained on track for its worst monthly performance in 17 years, down nearly 14% in March and set to snap a seven-month winning streak. The prolonged selloff was driven by growing uncertainty around Federal Reserve rate cuts, as the Iran conflict pushed oil prices higher and fanned inflation fears. Fed Chair Jerome Powell noted that long-term inflation expectations remained anchored, but markets continued pricing in fewer rate reductions.

Other central banks, including the European Central Bank and the Bank of Japan, signaled potential rate hikes to counteract energy-driven inflation, lifting bond yields and reducing the appeal of non-yielding assets like gold. Silver fell roughly 23% in March, while platinum dropped around 19%, reflecting the broader pressure across precious metals.