Gold Prices Edge Up, Hold Above $5,000 Amid Geopolitical Tensions
Gold prices posted modest gains on Tuesday afternoon (March 17), supported by strong safe-haven demand amid escalating geopolitical tensions linked to the Iran conflict. However, the upside remains limited as investors stay cautious ahead of the Federal Reserve’s upcoming monetary policy decision.
As of 5:00 PM WIB, spot gold rose 0.2% to $5,012.80 per troy ounce, while gold futures for April 2026 delivery climbed 0.3% to $5,016.80 per troy ounce.
According to ActivTrades analyst Ricardo Evangelista, gold continues to draw support from heightened safe-haven demand driven by geopolitical and economic uncertainty stemming from the Iran war.
The conflict intensified on Tuesday as Iran launched fresh attacks on the United Arab Emirates, entering its third week with at least 2,000 reported casualties and no clear signs of de-escalation.
Strikes targeting the UAE triggered fires at Fujairah port, a key oil export terminal where operations by state-owned ADNOC were halted. This disruption threatens to deepen the ongoing energy crisis, which has already pushed oil prices sharply higher.
Oil prices remain elevated above $100 per barrel, with the Strait of Hormuz largely restricted. Meanwhile, US allies have declined calls to deploy naval forces to escort tankers through the critical shipping route.
Rising energy prices have capped further gains in gold by reigniting inflation concerns and dampening expectations for interest rate cuts this year, Evangelista added.
While gold is traditionally viewed as a hedge against inflation, it tends to underperform in high-interest-rate environments due to the increased opportunity cost of holding non-yielding assets.
Market participants are now closely watching the Federal Reserve, which is widely expected to keep interest rates unchanged for a second consecutive meeting when it announces its policy statement on Wednesday.
In addition, investors are awaiting policy decisions from the European Central Bank, the Bank of England, and the Bank of Japan, all of which are set to hold their first meetings since the conflict began on February 28.