02:00 PM EDT, 04/07/2026 (MT Newswires) -- (Updates prices.)

Gold edged higher midafternoon Tuesday, with the dollar little changed, even as the war on Iran continues to raise inflation worries while a report showed a larger than expected drop in U.S. durable goods orders in February, showing a weakening manufacturing sector.

Gold for May delivery was last seen up $16.40 to US$4,701.10 per ounce.

The price of the precious metal has fallen by 11% since the United States and Israel began their war on Iran on Feb. 28. Iran's closure of the Strait of Hormuz has cut off 20% of daily global oil demand from Persian Gulf states. Oil prices have since climbed to four-year highs, raising fears of rising inflation and higher interest rates, pushing investors away from gold.

"The ongoing Middle East crisis continues to stoke inflation fears, lifting bond yields and lowering the chance of rate cuts while rising liquidity concerns -- amid stress among some sovereign holders and select asset classes -- are driving demand for cash," Saxo Bank noted.

The U.S. Census Bureau reported February durable-goods orders fell by 1.4% from the prior month, down from a drop of 0.5% in January, while the consensus estimate expected a drop of 1.1%, according to Marketwatch.

The drop is the latest sign of a slowing U.S. economy and comes ahead of other key U.S. economic data coming this week. The releases include the February Personal Consumption Expenditures Index, the Federal Reserve's preferred inflation measure, on Thursday, while the March Consumer Price Index will be released on Friday.

The dollar edged lower early, with the ICE dollar index last seen down 0.15 points to 99.83. Treasury yields were mixed, with the U.S. two-year note last seen paying 3.854%, down 1.0 basis points, while the yield on the 10-year note was up 1.1 points to 4.355%.