Gold Holds Above $5,000 as Oil Prices, Iran Conflict and Rate Decisions Drive Trade

Gold Stabilizes After Brief Dip Below $5,000

Spot gold rose 0.6% to $5,035.62 an ounce by 01:26 ET (05:26 GMT) on Tuesday, while gold futures advanced 0.8% to $5,039.94 an ounce. The gains followed a brief move below $5,000 an ounce in the prior session, after which prices recovered as a decline in oil eased some concerns about the Iran war’s inflationary impact.

Despite the latest uptick, gold has remained firmly within a $5,000 to $5,200 per ounce range over the past three weeks. The conflict involving the United States, Israel and Iran has produced mixed signals for bullion, with increased safe-haven demand countered by worries that the war could fuel inflation.

A significant portion of gold’s rally in early 2026, when prices reached record highs near $5,600 per ounce, had been driven by expectations of lower interest rates this year. Current market fears that inflation could reaccelerate, particularly via higher energy prices, are now challenging those earlier assumptions.

Central Bank Meetings and Rate Outlook in Focus

Attention this week is centered on a series of monetary policy decisions by major central banks. The Federal Reserve is scheduled to meet on Wednesday and is widely expected to leave interest rates unchanged, amid uncertainty over how the Iran conflict will affect inflation.

The Bank of Canada will also announce its rate decision on Wednesday, followed by the Bank of Japan, Swiss National Bank, Bank of England and European Central Bank on Thursday. Market participants are focused on how these institutions will address the risk of rising inflation stemming from higher oil prices linked to the Iran conflict.

Concerns that an oil-driven spike in global inflation could prompt a more hawkish stance from central banks have implications for non-yielding assets such as gold. Higher interest rates generally reduce the appeal of holding bullion, which does not generate income.

Other Precious Metals Trade Higher but Remain Rangebound

Other precious metals advanced alongside gold in Tuesday’s Asian session. Spot platinum gained 1.9% to $2,156.27 an ounce, while spot silver rose 1% to $81.785 an ounce.

However, both platinum and silver, like gold, have largely traded rangebound after retreating from record highs reached in late January. Recent price action reflects a balance between safe-haven interest, shifting inflation expectations and evolving views on the future path of global interest rates.

FAQ

What were gold prices in Asian trade on Tuesday?
Spot gold was up 0.6% at $5,035.62 an ounce by 01:26 ET (05:26 GMT), and gold futures rose 0.8% to $5,039.94 an ounce.

Why is the $5,000 level significant for gold?
Gold has been trading in a $5,000–$5,200 per ounce range for the past three weeks, making $5,000 a key psychological and technical level that traders are monitoring.

Which central banks are meeting this week?
The Federal Reserve and the Bank of Canada meet on Wednesday, while the Bank of Japan, Swiss National Bank, Bank of England and European Central Bank are scheduled to decide on interest rates on Thursday.

How are other precious metals performing?
Spot platinum rose 1.9% to $2,156.27 an ounce, and spot silver increased 1% to $81.785 an ounce, though both remain rangebound after falling from record highs in late January.