Gold Holds Steady as Markets Watch U.S. Hormuz Shipping Plan, U.S.-Iran Talks

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International gold prices were little changed as investors weighed a U.S. plan to steer some ships away from the Strait of Hormuz and hopes for progress in U.S.-Iran talks. Demand for safe-haven assets eased somewhat, but gold avoided a sharper drop as energy prices stayed elevated, tempering expectations for interest-rate cuts in major economies.

Bloomberg reported that spot gold in Singapore trading on Monday morning was $4,609.23 an ounce (about 6.78 million won), down 0.1%. It traded around $4,620 an ounce (about 6.80 million won) during the session. Gold has posted a second straight weekly decline and is down about 12% since the outbreak of war in late February.

Markets are focused on U.S. President Donald Trump’s Hormuz initiative. Trump said on social media the previous day that the United States would begin, from the 5th, guiding some vessels not related to the Iran conflict away from the Strait of Hormuz. He also said “positive talks are underway” with Iran.

Tensions, however, have not fully eased. Trump previously suggested Iran’s latest peace proposal alone might not be enough. If energy prices rise further due to the war, inflation pressure could build again, weakening expectations for rate cuts by major central banks. That would weigh on non-yielding gold.

U.S. fiscal and monetary policy events this week are also in focus. Investors are watching the Treasury’s borrowing plans for the next three months, remarks from Federal Reserve officials, and key economic releases including monthly employment data. The updates are expected to offer clues on the future path of interest rates and the direction of the U.S. fiscal deficit.

Over the medium to long term, bullish views on gold remain. The World Gold Council said central bank gold purchases in the first quarter rose 17% from the previous quarter to 243.7 metric tons. Bloomberg said that was the fastest pace of increase in more than a year. Bloomberg also reported that Tether Holdings has continued buying gold and has become the world’s largest known holder outside banks and governments.

At the same time, spot silver rose 0.3% to $75.57 an ounce (about 110,000 won), while platinum and palladium also gained. The Bloomberg Dollar Spot Index fell 0.1%. The index tracks the dollar’s value against currencies of major trading partners.

* This article has been translated by AI.

AJP