Gold prices stabilized on Monday during Asian trading after briefly slipping below a key psychological level earlier in the session. Investors remained focused on developments in the ongoing conflict involving the U.S., Israel and Iran.
Traders also stayed cautious ahead of the Federal Reserve’s policy meeting later this week, with concerns that the central bank could maintain a hawkish stance as inflation pressures remain persistent.
Spot gold was little changed at $5,016.84 an ounce at 01:47 ET (05:47 GMT), while gold futures declined 0.8% to $5,020.76 per ounce. Earlier in the session, spot gold had dipped temporarily below the $5,000 per ounce mark.
Iran conflict continues, Trump seeks support over Hormuz
The conflict involving Iran showed little sign of easing after U.S. and Israeli forces reportedly struck a major export terminal over the weekend, prompting threats of retaliation from Tehran.
Oil prices remained comfortably above $100 per barrel, although gains eased slightly 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 suggested that an end to the conflict could be near—claims that Tehran has repeatedly dismissed.
Despite the geopolitical tensions, gold has not benefited as strongly as expected from safe-haven demand. The metal has been weighed down by concerns that inflationary pressures linked to the conflict could keep interest rates elevated 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 factored into bullion’s price weakness.
However, the ANZ analysts emphasized that the broader case for gold as a hedge against geopolitical risk remains intact. The metal is still up around 16% so far in 2026.
Mixed performance across metals
Other precious metals traded in mixed territory on Monday as the U.S. dollar strengthened.
Spot silver slipped 0.3% to $80.2605 per ounce, while spot platinum advanced 1.8% to $2,064.22 per ounce.
Focus turns to Federal Reserve meeting
Market attention this week is centered on the Federal Reserve’s policy meeting, where the central bank is widely expected to keep interest rates unchanged.
Expectations of a pause have been driven largely by growing uncertainty surrounding the U.S. economic outlook, particularly as investors worry that higher energy prices linked to the Iran conflict could fuel inflation.
The Fed’s independence also drew attention 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 lowering interest rates, and the court ruled in his favor.
The legal dispute had raised questions about the Fed’s independence. The Justice Department said it plans to appeal the ruling, and the case could ultimately be decided by the Supreme Court.