Gold prices were largely stable in Asian trading on Monday after briefly dipping below an important psychological threshold earlier in the session. Investors remained focused on developments surrounding the ongoing conflict involving the United States, Israel and Iran.
Caution also prevailed ahead of this week’s Federal Reserve policy meeting, with markets concerned that the central bank could maintain a hawkish tone as inflation pressures remain persistent.
Spot gold was little changed at $5,016.84 per ounce at 01:47 ET (05:47 GMT), while gold futures slipped 0.8% to $5,020.76 per ounce. Earlier in the session, spot prices briefly dropped below the $5,000 per ounce mark.
Iran conflict continues, Trump seeks support over Hormuz
The conflict involving Iran showed no clear signs of easing after U.S. and Israeli forces reportedly struck a major export facility over the weekend, prompting warnings of retaliation from Tehran.
Oil prices remained comfortably above $100 per barrel, although they pared some gains on Monday after U.S. President Donald Trump said discussions were underway to form a coalition aimed at reopening a crucial shipping route that Iran has blocked.
Trump said the conflict with Iran could be nearing an end—claims that Iranian officials have repeatedly rejected.
Despite heightened geopolitical tensions, gold has not fully benefited from safe-haven demand. The metal has been weighed down by concerns that inflation linked to the conflict could keep interest rates higher for longer.
“Gold has struggled as it is being overshadowed by a stronger USD, rising yields and uncertainty surrounding Federal Reserve policy,” ANZ analysts wrote in a note, adding that liquidations by traders, to meet margin calls, had also contributed to weakness in bullion prices.
However, ANZ analysts stressed that the broader case for gold as protection against geopolitical risk remains intact. The metal is still up roughly 16% so far in 2026.
Other metals show mixed performance
Other precious metals traded unevenly on Monday as the U.S. dollar strengthened.
Spot silver declined 0.3% to $80.2605 per ounce, while spot platinum climbed 1.8% to $2,064.22 per ounce.
Attention turns to Federal Reserve meeting
Market focus this week is firmly on the Federal Reserve’s policy meeting, where the central bank is widely expected to keep interest rates unchanged.
Expectations for a pause have been driven largely by growing uncertainty over the outlook for the U.S. economy, particularly as investors worry that higher energy prices linked to the Iran conflict could push inflation higher.
The Fed’s independence also came under scrutiny last week after a U.S. judge blocked subpoenas issued by the Department of Justice against Chair Jerome Powell over alleged cost overruns.
Powell argued that the subpoenas were intended to pressure the central bank into cutting interest rates, and the court ruled in his favor.
The legal dispute had raised fresh questions about the Fed’s independence. The Justice Department said it plans to appeal the decision, and the case may ultimately be decided by the Supreme Court.
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