Update: Gold Steady as International Tensions Offset Lower Demand and Concerns the Fed is Ending Rate Cuts

02:00 PM EST, 02/19/2026 (MT Newswires) -- (Updates prices.)

Gold edged lower midafternoon on Thursday but is sticking above the US$5,000 mark despite closed China markets as tensions between the United States and Iran rise, while the dollar was higher as minutes from the last meeting of the Federal Reserve's policy committee indicated the central bank may not be ready for another cut to interest rates.

Gold for March delivery was last seen down US$8.20 to US$5,001.30 per ounce.

Rising international tensions are offering support for the metal, even as demand remains limited with China's market closed for the Lunar New Year holiday. While the United States and Iran are in indirect talks in Geneva over Iran's nuclear and ballistic missile programs, there are concerns the Trump Administration is readying military action against the country as it builds up forces in range of the Persian Gulf.

"Though Iranian representatives have signaled a willingness to return to the negotiating table with a more detailed proposal, there are no indications that the leadership is prepared to end domestic uranium enrichment or its ballistic missile program. Certainly, one side could still blink, but the massive buildup of US military assets in the region as well as the recent Iranian naval exercise in the Strait of Hormuz seem to suggest that the launch sequence for a second military conflict has commenced," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, wrote.

Rising tensions are offering support to the metal even as the Wednesday release of the minutes of the last meeting of the Federal Open Market Committee (FOMC) showed some members are turning hawkish and may support an interest-rate hike, raising concerns the central bank is ready to step back from its rate-cut program.

"Gold pushed back above USD 5,000 on heightened Middle East tensions, only to pause as the dollar and bond yields firmed after the latest FOMC minutes showed officials wary of cutting rates," Saxo Bank noted.

The dollar rose for a third day early, with the ICE dollar index last seen up 0.16 points to 97.85, the highest since Jan.22, Treasury yields were mixed, with the U.S. two-year note last seen paying 3.468%, up 0.6 basis points, while the yield on the 10-year note was down 0.7 points to 4.074%.

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