Gold prices held steady on Wednesday as investors stayed on the sidelines, assessing the economic impact of the West Asia conflict ahead of the US Federal Reserve’s policy decision.
Spot gold edged down 0.1 per cent at $5,000.77 per ounce as of 0243 GMT. US gold futures for April delivery fell 0.1 per cent to $5,004.60. Gold’s trajectory “will largely depend on the Fed’s forward-looking guidance … Will the Fed still be looking for one interest rate cut (this year) or will they start to actually pencil in no cut at all due to this very fluid situation in the West Asia,” said Kelvin Wong, a senior market analyst at OANDA.
The Fed is widely expected to hold rates steady for a second straight meeting when it announces its policy decision later in the day.
Oil prices stayed above $100 a barrel, as Iranian attacks on the United Arab Emirates deepened fears over the global supply outlook.
“We may see these oil prices coming down gently, but with that geopolitical risk premium still intact, then that could see some bargain hunting for gold,” said Wong.
The Strait of Hormuz, a conduit for a fifth of the world’s oil shipments, remains largely shut, with Iran threatening to attack tankers linked to the US and Israel.
The Strait’s closure kept crude elevated, adding to inflationary pressures by pushing up transport and manufacturing costs. The inflation backdrop typically supports gold as a hedge, but high interest rates dull the metal’s appeal by boosting returns on yield-bearing assets. Israel’s killing of Ali Larijani, Iran’s security chief and the most senior figure targeted since the first day of the US-Israeli war, further escalated tensions. A senior Iranian official said the country’s new supreme leader had rejected de-escalation proposals passed on by intermediary nations. Meanwhile, central banks in the UK, the euro zone, Japan, Canada, Switzerland, and Sweden will also meet this week in their first sessions since the start of the Iran war.
Spot silver fell 0.4 per cent to $79 per ounce. Spot platinum was down 0.3 per cent at $2,118.70, while palladium held steady at $1,601.63.
Published on March 18, 2026
