gold prices were stable, hovering around $5,004.71 per ounce as market participants assessed the heightened conflict in the Middle East and prepared for the upcoming U.S. Federal Reserve meeting on interest rates. U.S. gold futures for April delivery also settled slightly higher at $5,008.20.

The gold market is experiencing a "balancing act" between safe-haven demand prompted by geopolitical uncertainties and bearish pressures stemming from ongoing inflation concerns. Jim Wyckoff, a senior analyst at Kitco Metals, remarked, "I think gold will probably make new record highs, but I suspect it won't be anytime soon. The bulls have just run out of gas."

The ongoing conflict between Iran and Israel, now in its third week, has severely disrupted energy trade and raised fears regarding inflation spikes. Israel recently claimed responsibility for killing Iran's security chief, while Iranian officials indicated that the new supreme leader rejected de-escalation offers from intermediaries, demanding that the U.S. and Israel be “brought to their knees.”

Despite the instability, gold benefits from its status as a safe asset during uncertain times. However, rising interest rates make it less attractive for investors, as gold yields no interest. Analysts predict that the Fed is unlikely to cut rates in light of the persistent tensions and oil supply issues.

Oil prices have also risen, with crude prices jumping more than 2% during the day. The Fed's decision, expected soon, will be crucial in determining market sentiment moving forward.

Among other precious metals, silver fell by 1.5%, while platinum and palladium saw slight gains of 0.6% and 0.7%, respectively. Investors are closely monitoring the broader implications of the ongoing conflict and its impact on global economic conditions, highlighting gold's role as a hedge against uncertainty and inflation.