Gold Price Holds Above $5,000, Focus on Iran War and Central Bank Meetings

Investing.com - On Tuesday morning in Asia, gold prices remain steady above key levels, with market focus still on oil prices, the US-India-Iran war, and a series of upcoming central bank meetings this week.

Gold briefly dipped below $5,000 per ounce in the previous trading day, but as oil prices declined, easing some concerns about inflation from the Iran conflict, gold prices rebounded above that level.

As of 19:45 Eastern Time (23:45 Beijing Time), spot gold is steady at $5,008.66 per ounce, while gold futures are up 0.2% at $5,013.51 per ounce.

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On Monday, the US dollar fell 0.5%, providing support for gold prices after two weeks of strong gains.

This was mainly due to a sharp drop in oil prices on Monday, with some investors taking profits, and reports indicating that a few ships have passed through the Strait of Hormuz.

Since the outbreak of the Iran conflict, gold has generally underperformed, as increased safe-haven demand has been largely offset by market concerns over war-related inflation effects.

Markets worry that global inflation driven by oil prices will prompt major central banks to adopt more hawkish stances, keeping interest rates high for longer.

A series of major central bank meetings are scheduled this week, starting with the Reserve Bank of Australia on Tuesday. The Federal Reserve and the Bank of Canada will hold meetings on Wednesday.

The Bank of Japan, Swiss National Bank, Bank of England, and European Central Bank will decide on interest rates on Thursday.

On Tuesday, other precious metals are mostly flat. Spot platinum remains steady at $2,116.0 per ounce, while spot silver rises 0.1% to $80.8225 per ounce.

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