PRECIOUS-Gold steady as markets track Iran war tensions and await Fed decision
By Ashitha Shivaprasad
March 17 (Reuters) - Gold prices held nearly steady on Tuesday, as market participants monitored the intensifying Iran conflict and awaited the U.S. Federal Reserve’s upcoming policy decision.
Spot gold XAU= was little changed at $5,016.53 per ounce by 10:51 a.m. ET (1451 GMT). U.S. gold futures GCcv1 for April delivery rose 0.4% to $5,021.10.
Jim Wyckoff, senior analyst at Kitco Metals, said the gold market was "a balancing act of safe‑haven demand driven by heightened geopolitical uncertainty, and the bearish pressures from rising inflation".
"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 known as a safe asset during periods of uncertainty and inflation, but because it yields no interest, it becomes less attractive in a high‑rate environment.
Inflation is being driven by the U.S.-Israeli war on Iran, now in its third week, which has led to the severe disruption of energy trade.
Israel claimed on Tuesday to have 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 U.S. first be "brought to their knees."
International oil prices LCOc1 rose more than 1% for the day. O/R
Elsewhere, the U.S. central bank is expected on Wednesday to announce a decision to hold interest rates steady.
Commerzbank, in a note, said that the Fed meeting is unlikely to provide impetus for the gold price, as uncertainty surrounding the duration of the war and the disruption to oil supplies is likely to make the Fed cautious.
Among other metals, spot silver XAG= fell 0.2% to $80.58 per ounce, platinum XPT= gained 1.2% to $2,138.52, and palladium XPD= rose 0.6% to $1,608.25.
