Precious metals steady as market awaits policy cues
Gold prices stayed confined to a narrow trading range on Monday as the U.S. dollar hesitated in the face of mixed signals over a possible U.S.-Iran de-escalation and with investors awaiting a key Federal Reserve policy meeting later this week.
After a pronounced decline last week, bullion attracted some bids following a weekend report that Iran had submitted a new proposal to the United States that included reopening the Strait of Hormuz. That report contributed to a cautious tone in trading rather than driving a decisive directional move.
Market quotes
Spot gold was unchanged at $4,711.0 an ounce, while gold futures were down 0.3% at $4,725.94 per ounce as of 02:01 ET (06:01 GMT). Other precious metals showed limited movement on Monday, with spot silver flat at $75.6975 per ounce and spot platinum rising 0.5% to $2,023.54 per ounce.
Diplomatic developments and naval dynamics
Plans for additional U.S.-Iran talks unraveled over the weekend after Iranian officials departed Pakistan and Washington called off plans to send a delegation to Islamabad. In public comments, President Trump said Tehran could phone if it wanted to talk, and he reiterated that Iran should not possess a nuclear weapon - a stance described in reporting as a core motivator of the conflict.
An Axios report injected some optimism by saying Iran offered the U.S. a proposal on reopening the Strait of Hormuz as part of steps toward ending the war. A notable element of that proposal was a postponement of discussions on Iran's nuclear activities to a later date - a point the report noted could face resistance from U.S. officials.
Despite the report, major elements of the standoff remain in place. A naval blockade against Iran continues, and Tehran has largely kept the Strait of Hormuz closed. The closure has pushed oil prices sharply higher, stoking concerns about persistent global inflation and the prospect of more hawkish central-bank responses. Those inflation concerns helped to firm the dollar and put relative pressure on non-yielding assets such as gold.
Federal Reserve meeting in focus
Attention is squarely on this week’s Federal Reserve meeting, where the central bank is widely expected to hold interest rates steady. Market participants are poised to scrutinize the Fed’s economic outlook, which must be assessed in light of elevated geopolitical uncertainty tied to the Iran conflict.
This meeting is anticipated to be the final one under Chair Jerome Powell, whose term is due to end on May 15. Kevin Warsh, President Trump’s nominee to replace Powell, told Congress last week that he had made no commitments to cut interest rates and was viewed as a less dovish candidate than some market participants had expected.
Warsh’s confirmation as Fed chair was reported to be moving forward after Republican Senator Thom Tillis dropped his opposition. That development followed the Department of Justice dropping a criminal probe into Chair Powell - a probe that critics said risked pressuring the central bank to change its policy stance.
Outlook
With geopolitical frictions and the upcoming Fed decision both weighing on investor sentiment, precious metals traders are likely to remain responsive to incremental developments on both fronts. In the near term, bullion may continue to track dollar dynamics, oil-driven inflation concerns, and any fresh signals from U.S.-Iran negotiations or Fed communications.
Note: This article reports market data and political developments as presented in the available reporting for the period described.