Gold Prices Hold Above $5,000 as Central Bank Meetings and Iran War Stay in Focus

Gold prices remained steady above the critical $5,000 per ounce threshold during early Asian trading on Tuesday, as investors kept a close eye on oil market movements, the ongoing U.S.-Israel military campaign against Iran, and a series of high-stakes central bank decisions scheduled throughout the week.

The precious metal briefly dipped below the $5,000 mark in the previous session before staging a recovery, supported by a pullback in oil prices that helped ease inflation fears tied to the Iran conflict. Spot gold held at $5,008.66 per ounce, while gold futures edged up 0.2% to $5,013.51 per ounce as of 19:45 ET.

A 0.5% weakening in the U.S. dollar on Monday added further support to bullion, as the greenback pulled back following two consecutive weeks of strong performance. Oil prices also declined sharply due to profit-taking and reports of vessels resuming movement through the Strait of Hormuz, offering some relief to commodity markets.

Despite traditionally serving as a safe-haven asset during geopolitical turmoil, gold has underperformed since the Iran conflict escalated. While demand for bullion increased, gains were largely offset by concerns that oil-driven inflation could push major central banks toward more aggressive monetary tightening, keeping interest rates elevated for an extended period.

This week's central bank calendar is packed. The Reserve Bank of Australia kicked off proceedings on Tuesday, with the U.S. Federal Reserve and Bank of Canada both meeting on Wednesday. Thursday brings decisions from the Bank of Japan, European Central Bank, Bank of England, and Swiss National Bank — all of which could significantly influence gold's near-term direction.

Other precious metals were largely unchanged. Platinum steadied at $2,116.00 per ounce, while silver edged 0.1% higher to $80.8225 per ounce.