Gold bars weighing 1000 grams each are displayed at the Austrian Gold and Silver Refinery (Oegussa) in Vienna, Austria, on Feb. 3, 2026.
Georg Hochmuth | AFP | Getty Images
Gold rose nearly 2% on Tuesday, buoyed by a softer dollar and easing inflation concerns as oil prices pulled back amid indications the conflict in the Middle East could end soon.
Spot gold was up 1.9% at $5,231.79 per ounce. U.S. gold futures for April delivery settled 2.7% higher at $5242.10.
The dollar index slipped, supporting gold prices as a weaker dollar makes greenback-priced bullion more affordable for other currency holders.
Oil prices plummeted on Tuesday after soaring to a more than three-year high in the previous session as U.S. President Donald Trump predicted the war in the Middle East could end soon, easing concerns about prolonged disruptions to oil supplies.
On the ground, however, there were no signs of the war easing, with Tehran residents reached by Reuters describing U.S.-Israeli bombardment of the capital overnight as the fiercest of the conflict.
“With oil prices easing from peaks above $100 – still inflationary and therefore supportive for gold, but no longer high enough to seriously limit the Fed’s ability to cut rates – investors are gaining comfort that the debasement trade may be re-energizing as we move on,” said Bart Melek, global head of commodity strategy at TD Securities.
Despite being viewed as an inflation hedge, gold loses some appeal when interest rates rise, as it offers no yield.
Investors also await U.S. consumer price index data and Personal Consumption Expenditures (PCE) data due later this week. The Federal Reserve is expected to hold rates steady at its upcoming March 17-18 meeting.
Meanwhile, gold in Dubai is trading at a discount to London as flight constraints caused by the conflict keep more bullion in the local market, while demand remains subdued.
Spot silver rose 2.7% to $89.39. Spot platinum gained 2.2% at $2,229.15, while palladium fell 0.9% to $1,675.50.