Gold (XAU/USD) and Silver (XAG/USD) are experiencing volatile trading as markets remain tense ahead of a critical deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz. Gold is trading around $4,657 in a choppy range, with traders cautious as the deadline approaches, while Silver has extended its reversal from Thursday's high of $81.13 to levels below $72.00, reflecting mild bearish momentum [1][2].
President Trump has issued an ultimatum to Iran to 'make a deal or open up the Strait of Hormuz' by 8:00 p.m. Eastern Time (00:00 GMT on Wednesday), threatening to target Iran’s energy and civilian infrastructure if no agreement is reached [1][2]. Both the US and Iran rejected a ceasefire proposal submitted by Pakistan on Monday. Instead, Iran presented a 10-point plan including a permanent end to the war, lifting sanctions, and a formal framework for safe passage through the Strait. Trump described Iran’s proposals as a 'very significant step,' but said they were 'not good enough' [1][2].
Despite heightened geopolitical risks, Gold has struggled to attract sustained safe-haven demand, partly due to a firm US Dollar and rising Oil prices, which are fueling inflation concerns and prompting markets to scale back expectations for Federal Reserve rate cuts this year [1]. Economists expect US Consumer Price Index (CPI) data for March to show a 0.9% month-on-month increase, up from 0.3% in February, with annual inflation accelerating to 3.3% from 2.4% [1].
Silver’s technical outlook is mildly bearish, with the 4-hour Relative Strength Index (RSI) below 50 and the MACD indicator in negative territory. Support is seen at the $68.30 area, with further downside targets at $66.70 and $61.40. Resistance is noted at $75.00 and between $82.55 and $83.35 [2].
Despite near-term weakness, Gold’s broader outlook remains supported by strong central bank buying, including China’s central bank adding about 160,000 troy ounces (roughly 5 tons) in March, marking the 17th straight month of purchases. Global central banks bought a net 25 tons in the first two months of the year, according to Bloomberg estimates [1].
CONCLUSION
Gold and Silver markets are highly sensitive to the outcome of Trump’s ultimatum to Iran, with both metals showing choppy or bearish price action as the deadline nears. While immediate safe-haven demand is muted due to a strong US Dollar and inflation concerns, ongoing central bank buying provides longer-term support for Gold. The market remains on edge, awaiting further developments in the US-Iran standoff.