Gold prices were muted on Tuesday ‌as nervous investors stayed on the sidelines ahead of a deadline set by US President Donald Trump for Iran to reopen the Strait of Hormuz.

Spot gold edged 0.1% higher to $4,651.34 per ounce by 0702, while ​US gold futures for June delivery fell 0.2% to $4,676.50.

“Everyone is in a mode ​where we’re waiting for whatever the outcome is of this diatribe ⁠that the president has been on for the past several days,” said Ilya Spivak, ​head of global macro at Tastylive.

Iran and Israel traded attacks on Tuesday as Tehran defiantly refused to ​reopen the strait and accept a ceasefire deal on the eve of Trump’s deadline to agree to his demands or get “taken out.”

Oil extended gains, holding above $110 a barrel.

Elevated oil prices have fuelled global inflation concerns. While gold ​typically benefits during periods of inflationary pressure, higher interest rates reduce its appeal ​as a non‑yielding asset.

Cleveland Federal Reserve President Beth Hammack and Chicago Fed President Austan Goolsbee both ‌see inflation ⁠as a far bigger problem than employment, underscoring their support for maintaining tighter monetary policy.

Markets widely see no chance of a US rate cut this year, according to the CME’s FedWatch tool.

Investors now await minutes of the Federal Reserve’s March policy meeting on Wednesday, as ​well as US inflation ​indicators, including Personal ⁠Consumption Expenditures and Consumer Price Index data, later this week.

While traders remained cautious ahead of geopolitical and inflation catalysts, some analysts ​said the bull case for gold remained intact.

“Last year, gold ​went off ⁠on its own and became its own speculative narrative. We’re likely to see that re-emerge this year after whatever sort of risk washes off here… ultimately by the end ⁠of the ​year, we could end up closer to $5,500 and $6,000,” ​Spivak said.

Spot silver fell 0.7% to $72.28 per ounce, platinum shed 0.8% to $1,964.24, and palladium slid 0.1% to $1,483.38.