Gold prices held steady at $4,630 an ounce as markets parsed President Donald Trump’s announcement that the US would begin guiding non-combat ships through the Strait of Hormuz starting Monday. The move signals renewed efforts to de-escalate tensions with Iran, though Trump noted Tehran’s latest peace proposal “might not be enough.” Gold had already fallen 12% since February’s conflict began, with spot gold rising 0.3% to $4,628.88 Monday. Silver gained 0.8% to $75.96, while platinum and palladium also advanced.

The Bloomberg Dollar Spot Index dipped 0.1%, reflecting currency market sensitivity to geopolitical risks. Energy prices remain elevated due to Middle East tensions, dampening central bank appetite for rate cuts—a key factor weighing on non-yielding assets like bullion. Analysts emphasize that any progress in US-Iran negotiations could stabilize energy markets, indirectly supporting gold’s rebound.

However, uncertainty persists over whether Trump’s Hormuz initiative will materialize as planned.