Gold prices steadied after briefly falling below key levels in Asian trade on Monday, with focus squarely on more developments in the U.S.-Israel war with Iran.
Caution before a Federal Reserve meeting this week also weighed on gold, with markets fearing a potentially hawkish outlook from the central bank in the face of sticky inflation.
Spot gold steadied at $5,016.84 an ounce by 01:47 ET (05:47 GMT), while gold futures fell 0.8% to $5,5020.76/oz.
Spot prices had briefly fallen below $5,000/oz earlier in the session.
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Iran war rages on, Trump seeks help in Hormuz The Iran conflict showed few signs of easing, after the U.S. and Israel attacked a key export terminal over the weekend, sparking dire retaliation from Tehran.
Oil prices remained perched well over $100 a barrel, although they did trim some gains on Monday after U.S. President Donald Trump said talks were ongoing over a coalition to reopen a key shipping channel blocked by Iran.
Trump said an end to the Iran war remained close– claims that Tehran has persistently rejected.
Gold has largely underperformed since the advent of the conflict, as safe haven demand for the metal was largely overshadowed by fears of higher for longer interest rates due to the inflationary shocks from the Iran war.
“Gold has struggled as it is being overshadowed by a stronger USD, rising yields and uncertainty surrounding Federal Reserve policy,” ANZ analysts wrote in a note, adding that liquidations by traders, to meet margin calls, had also factored into bullion’s price weakness.
But ANZ analysts noted that the base case for gold, as a haven against geopolitical uncertainty, still remained intact. Gold is still trading up about 16% so far in 2026.
Broader metal prices were mixed on Monday as the dollar firmed. Spot silver fell 0.3% to $80.2605/oz, while spot platinum rose 1.8% to $2,064.22/oz.
Fed meeting awaited, hold largely priced in Focus this week is squarely on a meeting of the U.S. Federal Reserve, where the central bank is widely expected to leave interest rates unchanged.
Bets on a hold were spurred chiefly by increasing uncertainty over the U.S. economy, especially as markets fretted over a potential energy-driven increase in inflation stemming from the Iran war.
The Fed’s independence received some support last week, after a U.S. judge on Friday blocked subpoenas issued by the Department of Justice against Chair Jerome Powell over alleged cost overruns.
Powell had claimed that the subpoenas were aimed at intimidating the bank into cutting interest rates, with the court now ruling in his favor.
The subpoenas and the ensuing case had sparked heightened uncertainty over the Fed’s independence. The DOJ said it will appeal the decision, with the case likely headed for the Supreme Court.
