Gold steady as investors weigh Mideast risks ahead of Fed decision

FUNDAMENTALS

* Spot gold was little changed at $5,003.77 per ounce as of 0058 GMT. U.S. gold futures for April delivery held steady at $5,008.70.

* Oil ‌prices stayed ⁠above $100 ⁠a barrel, as renewed Iranian attacks on the United Arab Emirates deepened fears over the global supply outlook.

* Israel’s killing of Ali Larijani, Iran’s security chief and the most senior figure targeted since the first day of the U.S.-Israeli war, further escalated tensions. A senior Iranian official said the country’s new supreme leader had rejected de-escalation proposals passed ⁠on by ‌intermediary nations.

Live Events

* U.S. President Donald Trump said Washington is not ready to leave its military operation in Iran yet, ⁠but added, “We’ll be leaving in pretty much the very near future.”
* The Strait of Hormuz, a conduit for a fifth of the world’s oil shipments, remains largely shut, with Iran threatening to attack tankers linked to the U.S. and Israel.
* The Strait’s closure kept crude elevated, adding to inflationary pressures by pushing up transport and manufacturing costs. The inflation backdrop typically ‌supports gold as a hedge, but high interest rates dull the metal’s appeal by boosting returns on yield-bearing assets.
* The Fed is widely expected ⁠to hold rates steady for a second straight meeting when it announces its policy decision later in the day.

* Central banks in the UK, euro zone, Japan, Canada, Switzerland and Sweden willalso meet this week in their first sessions since the start of the Iran war.

* Spot silver rose 0.2% to $79.46 per ounce. Spot platinum was steady at $2,124, while palladium lost 0.2% to $1,598.84.

DATA/EVENTS (GMT)

1230 US PPI Machine Manuf’ing Feb

1400 US Factory Orders MM Jan.