March 17 (Reuters) - 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.
FUNDAMENTALS
* 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.
DATA/EVENTS (GMT)
0430 Japan Tertiary Ind Act NSA Jan
1000 Germany ZEW Economic Sentiment, Current
Conditions Mar
(Reporting by Noel John in Bengaluru; Editing by Sumana Nandy)
Print
