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

Gold price 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 contract for April 2026 delivery rose 0.3% to US$ 5,016.8 per troy ounce.

"$XAUUSD is gaining support because demand for safe-haven assets 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 a fire at Fujairah port, a major export terminal where oil loading by state-owned company ADNOC was 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 vulnerability point.

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

Although bullion is typically considered an inflation hedge, it tends to perform poorly in a high interest rate environment because the opportunity cost of holding an asset that generates no yield increases.

Meanwhile, the Fed is widely expected to keep interest rates stable for the 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.