Gold prices were largely steady on Tuesday as investors stayed on the sidelines, weighing the economic fallout from the conflict in the Middle East ahead of a slew of central bank policy decisions this week.
Spot gold firmed 0.1% to $5,007.61 per ounce as of 0110 GMT. U.S. gold futures for April delivery rose 0.2% to $5,011.70.
The dollar edged up, making greenback-priced bullion more expensive for holders of other currencies.
Oil held above $100 a barrel as the U.S.-Israeli war against Iran kept the Strait of Hormuz largely shut in the biggest disruption to global supplies on record.
U.S. President Donald Trump repeated his call for nations to help unblock the arterial Strait, and complained that none were willing to offer assistance.
Israel said it has detailed plans for at least three more weeks of war as its military pounded sites across Iran overnight, while Iranian drone attacks temporarily shut Dubai airport and hit a key oil facility in the United Arab Emirates.
The surge in oil prices and the risk of higher inflation have prompted markets to scale back expectations for global central bank easing this year.
Higher crude costs stoke inflation by lifting transport and production expenses. While gold is traditionally viewed as an inflation hedge, elevated interest rates boost the appeal of yield-bearing assets, dampening the metal’s demand.
The U.S. Federal Reserve is widely expected to hold rates steady for a second straight meeting when it announces its policy statement on Wednesday.
Central banks in Britain, euro zone, Japan, Australia, Canada, Switzerland and Sweden are also due to meet this week in their first gatherings since the start of the Iran war.
Spot silver fell 0.2% to $80.58 per ounce. Spot platinum shed 0.7% to $2,097.75 and palladium lost 0.2% to $1,595.32.
