Gold Ticks up as Iran Strikes UAE

Bloomberg and Reuters contributed to this report.

Gold nudged higher Tuesday as fresh Iran-UAE tensions pushed traders toward safe havens – yet gains were modest because markets are braced for a Federal Reserve hold this week that keeps the dollar and rates in the picture.

Spot gold was up about 0.2% at $5,012.80 an ounce as of 09:42 GMT, with April US futures roughly $5,016.80. The lift came after reports that Iran launched new strikes on the United Arab Emirates, including damage at the port of Fujairah port where state firm ADNOC has paused loading. With the Strait of Hormuz effectively sidelined and allies declining US calls to escort tankers, oil is staying stubbornly rich – which oddly cranks up inflation worries at the same time investors seek haven metal.

“Gold’s getting bid because geopolitics keeps risk premiums high,” said Ricardo Evangelista of ActivTrades. “But higher oil and a hawkish Fed outlook limit how far bullion can run.”

In plain English: oil above $100 a barrel feeds inflation fears and raises the opportunity cost of holding non-yielding gold, so the metal’s upside is capped unless central banks flip dovish.

All eyes are on the Federal Reserve this Wednesday, when it’s widely expected to stand pat on rates. Traders are also watching policy meetings at the European Central Bank, Bank of England and Bank of Japan for any hint of shifting tone that could free gold to rally.

Other metals: spot silver rose about 0.2% to $80.92 an ounce, platinum jumped 1.3% to $2,141.55, and palladium gained 1.6% to $1,623.21 – all getting a little lift from the same risk-off flows that nudged gold upward.

Geopolitics pushed traders toward gold, but hawkish rate expectations and rising energy costs are keeping the rally in check. If central banks turn more dovish or the Strait reopens, that balance could flip – until then expect cautious, headline-driven moves.