March 18 (Reuters) - Gold prices held steady on
Wednesday as investors kept to the sidelines, evaluating the
economic impact of the Middle East conflict ahead of the U.S.
Federal Reserve's policy 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.
* 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
(Reporting by Noel John in Bengaluru; Editing by Sumana Nandy)
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