Gold prices slip for a third consecutive session as Trump’s Iran ultimatum raises inflation fears.

Gold prices dipped in Asian trade on Tuesday, marking a third consecutive day of losses, as investors grappled with inflation and interest-rate concerns ahead of U.S. President Donald Trump’s looming deadline on Iran. Spot gold eased about 0.2% to roughly $4,640 an ounce by early U.S. trading, while U.S. gold futures also retreated. Markets had closed lower on Monday after a volatile session.

Trump’s warning to Iran fuels concerns about rising inflation.

Trump’s escalating rhetoric on Iran added to inflation concerns, even as geopolitical tensions intensified. He warned that Iran could face severe consequences if it failed to reopen the Strait of Hormuz by his Tuesday 8 p.m. ET deadline, increasing fears of a wider conflict in the Middle East.

The standoff has already disrupted global energy supplies and driven oil prices higher, further fueling inflation expectations and clouding the outlook for monetary policy.

Although gold is usually supported by geopolitical uncertainty, it has instead weakened as rising oil prices feed inflation worries and reduce the likelihood of near-term interest rate cuts by the U.S. Federal Reserve.

Higher interest rates tend to weigh on non-yielding assets like gold, while a stronger dollar has also added pressure on bullion prices.

Iran has turned down a U.S. proposal for a ceasefire.

Diplomatic efforts to ease the conflict have made limited headway. Iran has rejected a U.S.-backed proposal for a 45-day ceasefire and a phased reopening of the Strait of Hormuz.

Instead, Tehran is pushing for a comprehensive settlement that includes sanctions relief, security assurances, and compensation for damages.

The absence of any breakthrough has increased uncertainty in financial markets, with investors closely monitoring developments ahead of Trump’s deadline.

Market participants are also awaiting key U.S. inflation figures due on Friday, which are expected to offer further signals on the Federal Reserve’s interest rate path.

In other precious metals, silver declined 0.9% to $72.16 per ounce, while platinum fell 1% to $1,963.60 per ounce. Meanwhile, copper prices moved higher, with benchmark London Metal Exchange futures rising 0.7% to $12,422.5 a ton, and U.S. copper futures edging up 0.3% to $5.62 per pound.

Sources: Ayushman Ojha