Gold Prices Slip in Asia as Iran Strait Deadline Looms

Gold prices retreated in Asian trading on Monday following a strong weekly performance, with investors closely watching escalating tensions between the United States and Iran over control of the Strait of Hormuz. Spot gold declined 0.7% to $4,644.74 per ounce in early trading, while gold futures edged marginally lower to $4,672.75 per ounce.

The pullback comes after bullion surged nearly 4% over the prior week, though much of those gains were trimmed during Thursday's session. Market sentiment remained cautious as President Donald Trump issued a firm deadline to Iran, demanding the restoration of commercial shipping through the Strait of Hormuz by 8 p.m. Eastern Time on Tuesday. In a Truth Social post over the weekend, Trump suggested that Iranian power plants and bridges could face military action if tanker traffic through the critical waterway is not resumed.

The Strait of Hormuz is one of the world's most strategically important shipping lanes, facilitating roughly one-fifth of global oil supply. Ongoing disruptions have contributed to oil prices more than doubling this year, stoking inflation concerns and dampening expectations of near-term U.S. interest rate cuts. Since gold typically performs better in low-rate environments, the prospect of prolonged elevated rates has capped the metal's upside potential.

Adding to market complexity, a late Sunday report from Axios indicated that the U.S., Iran, and regional mediators were in discussions over a potential 45-day ceasefire arrangement that could pave the way for a broader peace deal, offering some cautious optimism to markets.

Stronger-than-expected U.S. jobs data released on Good Friday also reinforced the case for the Federal Reserve to hold rates steady, further pressuring precious metals. The U.S. Dollar Index edged 0.1% higher. Silver fell 0.6% to $72.58 per ounce, while platinum dipped 0.4% to $1,985.60 per ounce.