$XAUUSD Price Rises Slightly This Afternoon (17/2), Holding Above US$ 5,000

Gold prices strengthened slightly, supported by safe-haven demand amid geopolitical turmoil stemming from the Iran war. However, the gains tend to be limited as investors remain cautious ahead of the Federal Reserve's monetary policy decision.

Tuesday (17/3/2026) at 17.00 WIB, $XAUUSD spot price rose 0.2% to US$ 5,012.80 per troy ounce. Gold futures contracts for April 2026 delivery rose 0.3% to US$ 5,016.8 per troy ounce.

"$XAUUSD is gaining support as safe-haven asset demand remains high amid geopolitical and economic uncertainty caused by the war in Iran," said ActivTrades analyst Ricardo Evangelista.

Iran launched a new attack on the United Arab Emirates on Tuesday as the war entered its third week, with at least 2,000 deaths and no signs of ending.

The attack on the United Arab Emirates caused fires at Fujairah port, a major export terminal where oil loading by state-owned company ADNOC has been halted, potentially deepening the crisis that has already caused energy prices to surge.

Oil prices rose and continued to hold above $100 per barrel, with the Strait of Hormuz largely closed and U.S. allies refusing calls to deploy warships to escort tankers through this major chokepoint.

Rising energy prices have limited the potential for gold price increases, reviving inflation concerns and reducing expectations for rate cuts this year, Evangelista added.

Although bullion is typically considered an inflation hedge, it tends to underperform in high interest rate environments because the opportunity cost of holding non-yielding assets increases.

Meanwhile, the Fed is widely expected to keep interest rates steady for a second consecutive meeting when it announces its policy statement on Wednesday.

Markets are also awaiting policy decisions from the European Central Bank, Bank of England, and Bank of Japan, which will hold their first meetings since the conflict began on February 28.