Gold Retreats as Firmer Dollar Offsets Geopolitical Safe-haven Support

04/03/2026 06:44 AST

Gold prices eased on Tuesday, pulled back by a stronger dollar, while investors assessed the impact of an escalating US and Israeli air war against Iran.

Spot gold was down 0.4% at $5,305.23 per ounce, as of 0646 GMT. In the previous session, bullion climbed to its highest point in more than four weeks after the US and Israel launched strikes on ?Iran over ?the weekend.

US gold futures for April delivery ?were ?up 0.3% at $5,326.40.

The ?dollar hovered close to a more than five-week high reached on Monday, supported by firm demand and cautious market sentiment. A stronger greenback typically makes dollar-denominated assets such as bullion more expensive for foreign buyers.

"Inflationary concerns are proving to be of benefit to the dollar while being of some hindrance to the gold ?price," KCM Trade chief market analyst Tim Waterer ?said.

"Gold would arguably be trading ?higher than current levels were it not for dollar appreciation since the ?conflict intensified."

A senior official from the Iranian Revolutionary Guard Corps (IRGC) ?said the Strait of Hormuz has been closed and warned Iran would fire on any ship trying to pass through the strategic waterway, according to Iranian media.

This is Iran's most explicit warning since ?telling ships it was closing the export route on Saturday, a move that threatens to choke a ?fifth of ?global oil flows and send crude prices sharply higher.

US President Donald Trump has warned of a "big wave" of further attacks coming soon, without providing specific details.

"Persistent safe-haven demand due to the ongoing conflict is keeping a floor under the gold price," Waterer added.

The attack on Iran has pitched the Gulf into war, killing scores of civilians in Iran, Israel and Lebanon, thrown global air transport into chaos and shut down shipping through the Strait of Hormuz.

Silver fell 5.8% to $84.25/oz, after climbing to a more than four-week high on Monday. Platinum lost 4.4% to $2,200.89/oz, palladium fell 1.2% to $1,745.26.

Asharq Al Awsat