Gold recovered modestly on Tuesday after suffering one of its sharpest single-day declines in several months, with spot prices rising 0.6% to $4,139.91 per ounce as of 05:33 ET. Gold futures gained 0.1% to $4,171.90. The metal nevertheless remained near a seven-week low, pressured by rising U.S. Treasury yields and dollar strength. Oil prices continued climbing amid the dispute between the United States and Iran over access to the Strait of Hormuz, reinforcing inflation concerns. President Trump rejected Iran’s latest proposal to reopen the strait within one week, while Iranian leadership reportedly sees an agreement before November’s U.S. midterm elections as increasingly unlikely. The standoff has lasted eight months and continues to disrupt energy distribution. Higher crude prices can intensify inflation and encourage central banks to keep monetary policy tight, reducing the appeal of gold, which does not generate yield. Ten-year Treasury yields reached a 19-year high, further increasing the relative attractiveness of fixed-income assets. Gold has lost about 7% over the past 30 days after the Federal Reserve delivered its first rate hike since 2023 and maintained a hawkish stance. Market pricing puts the probability of another increase in October at about 70%. ANZ researchers described gold’s near-term outlook as challenging because of elevated yields and persistent inflation risks. Silver fell 2.4% to $64.382 per troy ounce during the earlier selloff. Investors are now focused on Wednesday’s personal consumption expenditures index, the Fed’s preferred inflation measure, and Friday’s nonfarm payrolls report. Geopolitical risk and higher energy prices support safe-haven demand, while rising yields and dollar momentum continue to pressure precious-metals valuations.