Gold prices edged higher on Tuesday, buoyed by easing fears of prolonged disruptions to oil shipments, while investors assessed the economic impact of West Asia conflict ahead of a slew of central bank policy decisions this week.
Spot gold firmed 0.4 per cent to $5,023.19 per ounce as of 0251 GMT. US gold futures for April delivery rose 0.5 per cent to $5,027.20.
“Gold prices pulled back in the first 24 hours of trade this week. That seems to echo the markets’ positive response to Iran’s foreign minister’s comments… In response, crude oil pulled back, yields ticked lower, and the US dollar gave back some recent gains as stocks rose,” said Ilya Spivak, head of global macro at Tastylive. Iran’s Abbas Araghchi said on Monday that the Strait of Hormuz is not closed to everyone, while some vessels sailed through the critical strait.
However, oil held above $100 a barrel as the US-Israeli war against Iran kept the strait largely shut, stranding tankers for weeks, in the biggest disruption to global supplies on record. US President Donald Trump repeated his call for nations to help unblock the Strait, and complained that none were willing to offer assistance.
Higher crude prices fuel inflation by raising transport and production costs. While gold is seen as an inflation hedge, higher interest rates boost yield-bearing assets, dampening demand for the metal.
“Watching news-flow from the US-Iran war and what it does to crude oil remains a key input, but the upcoming Fed meeting also has big catalyst potential. Gold may weaken if the central bank strikes a relatively hawkish tone,” Spivak said.
The US Federal Reserve is widely expected to hold rates steady for a second straight meeting when it announces its policy statement on Wednesday. Central banks in Britain, the euro zone, Japan, Australia, Canada, Switzerland, and Sweden also meet this week for the first time since the Iran war began.
Spot silver rose 0.6 per cent to $81.28 per ounce. Spot platinum gained 2.2 per cent to $2,161.35 and palladium was up 1.4 per cent at $1,620.45.
Published on March 17, 2026
