Gold Holds Above $5,000 With Fed, Iran War in Focus
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- Spot gold was little changed at $5,003.77 per ounce as of 0058 GMT, with U.S. gold futures for April delivery at $5,008.70, as markets awaited the Fed's rate decision.
- Oil prices stayed above $100 a barrel after renewed Iranian attacks on the UAE and the largely-shut Strait of Hormuz — a route for a fifth of global oil shipments — deepened supply concerns.
- Israel's killing of Ali Larijani, Iran's security chief and the most senior figure targeted since the first day of the U.S.-Israeli war, further escalated tensions, with Iran's new supreme leader rejecting de-escalation proposals from intermediary nations.
- President Trump said Washington is "not ready to leave" its military operation in Iran yet but added the U.S. would withdraw "in pretty much the very near future."
- The Fed is widely expected to hold rates steady for a second straight meeting, while central banks in the UK, euro zone, Japan, Canada, Switzerland, and Sweden hold their first sessions since the Iran war began.
- Spot silver rose 0.2% to $79.46, platinum held at $2,124, and palladium fell 0.2% to $1,598.84.
Why it matters: The Strait of Hormuz's near-closure is keeping oil above $100, pushing up transport and manufacturing costs and reinforcing the inflation backdrop that typically supports gold as a hedge — but with the Fed expected to hold rates, the metal also faces headwinds from yield-bearing assets. Iran's rejection of de-escalation removes any near-term exit ramp for the oil shock, and a synchronized week of central bank meetings means rate-cut hopes remain dim.
