Gold prices edged higher on Tuesday as investor sentiment improved following reports that U.S. President Donald Trump may be willing to end the military campaign against Iran, raising hopes of de‑escalation in the Middle East conflict.
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Spot gold rose 1.5% to $4,578.89/oz by 0235 GMT.
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U.S. gold futures (April) climbed 1.2% to $4,611.30.
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The U.S. dollar softened, making gold more affordable for holders of other currencies.
Despite Tuesday’s bounce, bullion remains on track for a 13% monthly drop — its steepest since October 2008, pressured by a stronger dollar and fading expectations of a U.S. rate cut this year. Gold is, however, still up about 5% for the quarter.
Analysts say markets are recalibrating after Washington signaled patience on the Iran conflict. “Gold has been stabilizing, with last Friday’s rally standing out as investors reassessed the Iran war as a recession risk,” said Ilya Spivak of Tastylive.
Context: Traders now see virtually no chance of a Federal Reserve rate cut in 2026, as rising energy costs threaten to spur inflation. Fed Chair Jerome Powell said policymakers would monitor how the conflict affects growth before acting on rates.
Other precious metals also gained: silver +3.3% ($72.27), platinum +1% ($1,916.77), and palladium +2.3% ($1,437.76).
Frequently Asked Questions
What caused gold's rise on March 31, 2026?
Spot gold climbed 1.5% to $4,578.89 per ounce amid hopes of U.S.-Iran de-escalation, as President Trump signaled willingness to end the military campaign even if the Strait of Hormuz stays closed temporarily.
Why is gold set for its worst monthly drop in over 17 years?
Despite the daily gain, gold has fallen more than 13% this month—its steepest decline since October 2008—due to a stronger dollar, higher energy prices fueling inflation, and nearly zero odds of Fed rate cuts in 2026.
How do other precious metals compare today?
Spot silver surged 3.3% to $72.27 per ounce, platinum rose nearly 1% to $1,916.77, and palladium gained 2.3% to $1,437.76, reflecting similar safe-haven demand amid geopolitical shifts.
What are Fed rate cut expectations for 2026?
Traders have priced out cuts this year, with higher oil prices risking broader inflation; Fed Chair Powell noted the bank can wait to assess the Iran war's economic impact before acting.
What's the quarterly outlook for gold despite the monthly slump?
Prices remain up about 5% for the quarter so far, though monthly data shows a 15% drop from early March highs around $5,000+ per ounce.
