Gold prices showed little movement in early Asian trading on Wednesday as investors monitored escalating tensions in the Middle East and awaited the outcome of the Federal Reserve's latest policy meeting. Spot gold traded at $5,008.55 per ounce, while gold futures hovered near $5,011.96 per ounce, keeping bullion firmly within its established $5,000–$5,200 range over the past month.
Safe-haven demand for gold has been tempered by persistent inflation concerns and elevated interest rates, preventing a stronger rally despite ongoing geopolitical instability. The U.S.-Israel military campaign against Iran continued to generate market uncertainty, particularly after an Israeli airstrike claimed the life of Iranian security chief Ali Larijani. Iran has responded with retaliatory strikes, and the conflict shows no signs of easing soon.
Oil prices remained above $100 per barrel as disruptions to the Strait of Hormuz raised fears over global energy supply. Elevated crude prices have intensified inflation worries, prompting central banks to take a more hawkish stance. Australia's Reserve Bank already moved to raise interest rates on Tuesday, citing inflationary pressures stemming from the regional conflict.
Other precious metals posted modest gains alongside gold. Spot silver climbed 0.4% to $79.64 per ounce, while platinum edged 0.2% higher to $2,135.26 per ounce, reflecting cautious optimism among commodity investors.
All eyes are now on the Federal Reserve, which is widely expected to hold interest rates steady at its Wednesday meeting. Investors are particularly focused on the central bank's commentary regarding inflation risks tied to the Iran conflict. The Fed's decision will be followed by rate announcements from the Bank of Japan, European Central Bank, Swiss National Bank, and Bank of England later in the week, making this a pivotal moment for global financial markets and precious metal prices.


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