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Gold prices (XAU/USD) rose to nearly $4,660 during the early Asian session on Tuesday as traders reacted to heightened geopolitical tensions. The surge followed U.S. President Donald Trump's announced deadline for potential military strikes on Iranian infrastructure after the Strait of Hormuz was closed. The Strait, a critical oil shipping route, remains a focal point for global energy markets, with its closure triggering immediate concerns about supply disruptions.
The move highlights gold's role as a safe-haven asset during geopolitical crises. Traders are assessing how military actions could impact oil prices and global economic stability, which often drives demand for gold. Central banks and institutional investors may also increase allocations to precious metals amid uncertainty.
Markets will closely monitor Trump's decisions and Iran's responses in the coming days. Any escalation could further boost gold prices, while de-escalation might lead to profit-taking. Investors should watch for updates on the Strait of Hormuz's status and broader Middle East tensions.
