Gold Steady Amid Iran Tensions and Fed Policy Watch
Gold prices held steady on Tuesday as geopolitical concerns over the Iran war bolstered demand for safe-haven assets, while investor caution ahead of the U.S. Federal Reserve’s upcoming policy meeting tempered price movements. Spot gold remained near $5,001 per ounce, with U.S. gold futures for April delivery edging slightly higher to $5,005.
The market response comes after Iran launched fresh attacks on the United Arab Emirates, targeting the port of Fujairah and halting oil exports by state firm ADNOC. Rising energy prices, with oil holding above $100 a barrel due to disruptions in the Strait of Hormuz, have intensified inflation fears and limited the upside for gold, which typically underperforms in high-rate environments.
Investors are also awaiting monetary policy decisions from the Federal Reserve, European Central Bank, Bank of England, and Bank of Japan. While gold acts as an inflation hedge, rising interest rates increase the opportunity cost of holding non-yielding bullion. Meanwhile, other precious metals saw mixed movements, with silver down 0.6%, platinum up 0.5%, and palladium rising 0.6%.
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