Gold steady as markets track Iran war tensions

Gold prices held steady on Tuesday, as market participants monitored the intensifying Iran conflict and awaited the US Federal Reserve's upcoming policy decision, reports Reuters.
Spot gold was little changed at $5,011.38 per ounce by 08:50 a.m. ET (1250 GMT). US gold futures for April delivery rose 0.3% to $5,016.40.
Jim Wyckoff, senior analyst at Kitco Metals, said the gold market was "a balancing act of safe?haven demand driven by heightened geopolitical uncertainty, and the bearish pressures from rising inflation".
"I think gold will probably make new record highs, but I suspect it won't be anytime soon. I think the bulls have just run out of gas," he added.
Bullion is known as a safe asset during periods of uncertainty and inflation, but because it yields no interest, it becomes less attractive in a high?rate environment.
Inflation is being driven by the US-Israeli war on Iran, now in its third week, which has led to the severe disruption of energy trade.
Defence Minister Israel Katz said on Tuesday the Israeli military had killed Iran's security chief while Tehran kept up attacks against Gulf neighbours.
Elsewhere, the US central bank is expected on Wednesday to announce a decision to hold interest rates steady.
Commerzbank, in a note, said that the Fed meeting is unlikely to provide impetus for the gold price, as uncertainty surrounding the duration of the war and the disruption to oil supplies is likely to make the Fed cautious.
Among other metals, spot silver fell 0.3% to $80.52 per ounce, platinum gained 0.8% to $2,130.23, and palladium rose 1.2% to $1,616.98.