Gold Gains on Iran Delay; Hawkish Fed Caps

This delay, extending the deadline to reopen the Strait of Hormuz until April 6, provided initial support for the commodity. However, significant appreciation for Gold is constrained by expectations of higher global interest rates, which typically reduce demand for non-yielding assets.

Investors are now convinced that major central banks, including the US Federal Reserve, will adopt a hawkish stance due to escalating geopolitical risks supporting higher energy prices and fueling inflation concerns. Traders have fully priced out further rate cuts by the US central bank and are increasing bets for a rate hike by year-end, which strengthens US Treasury bond yields and the US Dollar.

Conflicting reports on the US-Iran conflict, with Trump stating Iran was "begging" for a deal while Iranian officials denied talks and additional US troop deployments, maintain geopolitical risks, further underpinning the Greenback's global reserve currency status and capping Gold's upside. Technical analysis indicates a bearish setup, with Gold failing near the 100-day Simple Moving Average (SMA) at $4,630 and momentum remaining negative, suggesting fresh sellers will emerge at higher levels.