Gold steady as markets track Iran tensions, await Fed decision

2026-03-17 - 20:41

Gold prices held near steady on ​Tuesday, as market participants monitored the intensifying Iran conflict and ‌awaited the US. Federal Reserve’s upcoming policy decision. Spot gold was little changed at $5,004.71 per ounce by 2:03 p.m. ET (1803 GMT). U.S. gold futures for April delivery settled 0.1% ​higher at $5,008.20. The gold market reflected “a balancing act” between safe-haven demand on ​heightened geopolitical uncertainty and bearish pressures from inflation, said Jim Wyckoff, ⁠senior analyst at Kitco Metals. “I think gold will probably make new ​record highs, but I suspect it won’t be anytime soon. I think the ​bulls have just run out of gas,” he added. Bullion is considered a safe asset during periods of uncertainty and inflation, but becomes less attractive in a high-rate environment as ​it yields no interest. The US.-Israeli war on Iran, now in its third week, ​has led to severe disruption of energy trade and stoked fears of a spike ‌in ⁠inflation. Israel claimed on Tuesday it killed Iran’s security chief, while a senior Iranian official said the new supreme leader had rejected de-escalation offers conveyed by intermediaries, demanding Israel and the US. first be “brought to their knees.” International oil prices rose ​more than 2% ​for the day. The US. ⁠Fed is expected to announce its decision on interest rates on Wednesday and investors expect the central bank will ​keep rates steady. Commerzbank, in a note, said that the ​Fed meeting ⁠is unlikely to provide impetus to gold, as uncertainty surrounding the duration of the war and the disruption to oil supplies is likely to make the ⁠US. ​central bank cautious. Among other metals, spot silver ​fell 1.5% to $79.55 per ounce, while platinum gained 0.6% to $2,129.53 and palladium rose 0.7% to $1,609.70.