Quick overview

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The precious metal is posting gains during the session, supported by tensions between the United States and Iran, although it remains on track for a sharp monthly decline.

Gold rebounded on Tuesday but is still heading for its worst monthly performance in more than 17 years. The metal has fallen more than 13% in March, pressured by higher energy costs and a shift in expectations for U.S. monetary policy.

Still, gold moved higher in early trading, supported by hopes of a potential de-escalation in the Middle East conflict.

Market movements come as the U.S. dollar weakens slightly, making commodities cheaper for investors holding other currencies. This has been compounded by a modest pickup in risk appetite following signals from Washington pointing to a possible easing of tensions with Iran. Reports suggest the U.S. government could scale back its military campaign even if tensions persist in strategic areas such as the Strait of Hormuz.

At the same time, markets are reassessing their outlook, with traders now largely ruling out interest-rate cuts from the Federal Reserve this year, as rising energy prices risk reigniting inflation. This shift has weighed on gold, which typically benefits from a low-rate environment.

Despite the monthly drop, gold remains up roughly 5% on a quarterly basis, and some banks continue to hold a constructive medium-term outlook.

Key metals prices

Gold is trading at $4,561.68 per ounce, up 1.1% on the day, while silver is outperforming, rising 2.9% to $72.04.

Platinum is trading at $1,911.15 per ounce, up 0.6%, while palladium is also higher, gaining 2% to $1,434.23.