Ahead of Fed & BOJ, Gold Gains Slightly But Remains Range-Bound
Gold prices rose slightly and returned above key levels in European trading on Tuesday (March 17), with market attention still focused on oil prices, the escalation of the US-Israel-Iran war, and a series of major central bank meetings taking place this week. Gold briefly slipped below the psychological $5,000 per ounce level in the previous session, but recovered after lower oil prices eased some inflation concerns triggered by the Iran conflict.
In the latest session, spot gold rose slightly, while gold futures advanced more strongly. However, gold's movement generally remained stuck within the same range, around $5,000–$5,200 per ounce, which has held for approximately the past three weeks. The market perceives mixed signals from the Iran conflict: on the one hand, geopolitical risks are supporting safe-haven demand; on the other, the energy surge is fueling inflation fears, limiting gold's upside.
Other precious metals also strengthened. Platinum and silver rose in Tuesday's trading, but both remained rangebound after retreating from record highs reached in late January—indicating that the precious metals market has yet to find a clear direction.
The next focus this week is central bank meetings. The Federal Reserve is scheduled to meet on Wednesday and is widely expected to keep interest rates unchanged, as uncertainty about the inflationary impact of the Iran war increases. The Bank of Canada also meets on Wednesday, while the Bank of Japan, Swiss National Bank, Bank of England, and European Central Bank are scheduled to announce their interest rate decisions on Thursday.
Market participants will be closely monitoring central bank statements on inflation and interest rate expectations, particularly amid the risk of rising energy prices due to the war. A key market concern is that a surge in oil-driven global inflation could prompt central banks to take a more aggressive stance, keeping interest rates high for longer.
High interest rates typically put pressure on non-yielding assets like gold by reducing the attractiveness of holding precious metals. Part of gold's major rally in early 2026—which briefly pushed prices to near-record levels around $5,600 an ounce—was also fueled by speculation that interest rates would fall this year. Therefore, the "higher-for-longer" interest rate narrative will determine whether gold can emerge from its sideways phase or continue its choppy movement within the same range.
Source: Newsmaker.id
