Gold Faces Fresh Volatility as Trump Rejects Iran's Hormuz Proposal

President Donald Trump has rejected an Iranian proposal to reopen the Strait of Hormuz within a week, according to unnamed US officials cited by The Wall Street Journal, escalating tensions in the 211-day US-Iran conflict. Iran's proposal, presented by Foreign Minister Abbas Araghchi, requires the US to release $12bn in frozen assets, lift oil sanctions, and end its naval blockade, with all hostilities ceasing during the seven-day period. Trump expressed scepticism about Iran's commitment to US demands, which include preventing Iran from acquiring nuclear weapons and restoring free passage. Qatar is mediating indirect talks between the US and Iran at the UN General Assembly, with both sides saying diplomacy remains open. Analysts expect gold and oil futures to overreact on Monday, with gold potentially retesting support levels at $4,237.47 or $4,122.54 if no resolution emerges.