Gold prices rose above key levels in Asian trade on Tuesday with focus remaining on oil prices, the U.S.-Israel war on Iran, and a host of upcoming central bank meetings this week.
The yellow metal had briefly fallen below $5,000 an ounce in the prior session, but recovered back above the level after a drop in oil prices helped ease some concerns over the Iran war’s inflationary impact.
Spot gold rose 0.6% to $5,035.62/oz by 01:26 ET (05:26 GMT), while gold futures rose 0.8% to $5,039.94/oz.
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Gold remains rangebound amid Iran war uncertainty Gold remained squarely in a $5,000-$5,200/oz range seen over the past three weeks, as bullion prices took mixed cues from the Iran conflict.
Increased safe haven demand for the yellow metal was largely offset by concerns over the inflationary effects of the war.
Other precious metals also advanced on Tuesday. Spot platinum rose 1.9% to $2,156.27 oz, while spot silver rose 1% to $81.785/oz.
But like gold, the two have also largely traded rangebound after crashing from record highs in late-January.
Fed, c.bank meetings awaited for more cues A swathe of major central banks are set to meet this week, most notably the Federal Reserve on Wednesday. The Fed is widely expected to leave interest rates unchanged amid heightened uncertainty over the inflationary impact of the Iran conflict.
The Bank of Canada will also meet on Wednesday, while the Bank of Japan, Swiss National Bank, the Bank of England and the European Central Bank are set to decide on interest rates on Thursday.
Focus will be largely on inflation and rate expectations for major central banks, especially in the face of rising energy prices due to the Iran conflict.
Markets fear that an oil-fueled spike in global inflation will elicit a more hawkish stance from major central banks, leaving interest rates higher for longer.
Higher rates bode poorly for non-yielding assets such as gold, given that they lower the appeal of investing in the sector. A bulk of gold’s early-2026 rally, which saw the yellow metal hit record highs near $5,600/oz, was also fueled by bets on lower rates this year.
