Gold Prices Stabilize as Investors Weigh U.S. Delay in Striking Iran's Energy Infrastructure

After experiencing unusually volatile swings at the start of the week, gold prices have stabilized as investors weigh the decision by U.S. President Donald Trump to delay strikes on Iran’s energy infrastructure.

Gold steadied above $4,400 per ounce in early trading, recovering some of Monday’s losses, but closed the day down nearly 2%. The Middle East conflict has driven energy prices higher and increased inflation and rate hike risks, leading to a nine-day decline in gold prices—the longest streak since 2023.

On Monday, Trump announced he would delay the previously threatened military strikes by five days and said he had engaged in “productive dialogue” with Iran. U.S. stocks rose, while Treasury yields and the dollar retreated. However, Tehran denied having any negotiations with the U.S. at all. Oil prices stabilized after plunging 10% on Monday.

Although military action has been postponed, uncertainties remain regarding the outcome of negotiations and whether ships can pass through the Strait of Hormuz in the future. Even damage to existing energy infrastructure would take time to repair. This means inflation threats persist, compounded by market expectations that the Federal Reserve and other central banks will raise interest rates—an adverse factor for non-yielding precious metals.

During the more than three weeks of conflict, gold prices also declined partly due to investors rushing to cash out, selling relatively liquid and profitable gold positions.

Spot gold rose 0.8% to $4,443.99 per ounce. Silver increased 1.3% to $70.02 per ounce. Platinum and palladium prices also gained. The Bloomberg U.S. Dollar Spot Index, which measures the dollar’s value, closed down 0.4% the previous day but was flat on Tuesday.