Gold Prices Rebound After Trump Delays Iran Strikes

Gold managed to recover from a sharp four-month low on Monday after United States President Donald Trump indicated he would delay military strikes against Iran power plants and energy infrastructure. Although the metal remained down 2.2% at $4,388.22 per ounce by 1230 GMT, the announcement helped stabilize a market that had plunged as much as 8% earlier in the session. This marked the ninth consecutive day of losses for the safe-haven asset. The recent downturn has been severe, with gold falling approximately 17% since the Middle East conflict intensified on February 28. The current price sits about 22% below the record peak of $5,594.82 established on January 29. Last week, bullion recorded its most significant weekly decline in 43 years, while U.S. gold futures for April delivery settled down 4.2% at $4,382.30. Independent analyst Ross Norman observed that the market responded to the lower price points after the initial shock. > Despite having a pretty epic collapse in the early hours, we're seeing some bargain hunting coming in at the lower levels, driving the market back to roughly where it ended last week. Pressure on the metal has been exacerbated by a strengthening dollar and increasing expectations for interest rate hikes by the Federal Reserve. While rising energy costs stemming from the conflict in the Middle East have raised inflation concerns, the prospect of higher interest rates often reduces the appeal of gold, which does not provide a yield. In a related move, oil prices tumbled more than 13% following the postponement of strikes on Iranian energy targets. Trump noted that the administration has engaged in productive dialogue with Iranian officials, though reports from the Fars news agency suggested a lack of direct communication. Despite the current volatility, some market participants maintain a constructive long-term view, noting that gold remains up roughly 46% on a year-over-year basis. Ole Hansen, head of commodity strategy at Saxo Bank, commented on the potential for a rebound once technical selling pressure eases. > Once the dust settles and the current wave of forced selling runs its course, the outlook for gold in particular may improve again quite sharply. In other precious metals markets, Silver rose 0.6% to $68.16 per ounce, attempting a recovery after hitting its lowest level since mid-December. Platinum fell 1.3% to $1,897.17, while Palladium bucked the trend with a 3.6% gain to $1,454.64.