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Gold prices remained stable near $5,000 per ounce as geopolitical tensions over Iran and anticipation of the Federal Reserve's policy decision weighed on market sentiment. Analysts noted that the dollar's strength against major currencies and ongoing concerns about global inflation tempered gold's appeal as a safe-haven asset. Meanwhile, fears of a potential military escalation in the Middle East provided some support to bullion prices, balancing the impact of higher U.S. interest rates. For traders, the mixed signals from the Fed and geopolitical risks create a volatile environment. A dovish Fed could weaken the dollar, boosting gold demand, while hawkish signals might strengthen the dollar and suppress gold prices. Investors are closely monitoring the Fed's balance between inflation control and economic growth, which directly impacts the metal's performance. Looking ahead, the key focus will be on the Fed's decision this week and Iran's military posturing. If the Fed signals rate cuts, gold could break above $5,100. Conversely, a hawkish stance or de-escalation in the Middle East might push prices below $4,950. Gulf investors should watch dollar movements and regional stability indicators for directional clues.
