- Gold futures remain ranging near the key $5,000 mark as higher oil prices balance the geopolitics.
- Risks of rising inflation could keep global interest rates higher, increasing the opportunity cost of holding gold.
- Analysts expect the gold trajectory to reach around $6,000 by the end of 2026 amid strong macroeconomic factors.
On Wednesday, gold futures went up slightly and stayed close to the $5,000 psychological level. Investors remained cautious ahead of the US Federal Reserve’s decision on policy. The price of spot gold went up 0.15% to $5,010.03 per ounce, while the US gold futures for April delivery went up 0.13% to $5,014.24.
Traders stayed cautious as tensions in the Middle East were rising, and they expected the Federal Reserve to keep interest rates the same for the second meeting in a row. Market participants are now paying close attention to the central bank’s policy statement and what Fed Chair Jerome Powell has to say about the future rate path.
Gold’s appeal as a safe haven continues to be supported by geopolitical events. The ongoing war between Iran, the US, and Israel has messed up the world’s energy markets, especially since the Strait of Hormuz, which is a major route for about 20% of the world’s oil supply, is now effectively closed. Oil prices have gone up to over $100 a barrel, which makes investors worldwide more worried about inflation.
Gold is usually a good store of value when inflation is rising, but higher interest rates make it less appealing as they increase the returns on assets that pay interest. This situation has kept bullion in a narrow trading range even though there are strong macroeconomic factors at work.
Other precious metals did not all do well. Spot silver rose 0.25% to $79.95 per ounce, but platinum and palladium fell 0.61% and 0.88%, respectively.
Gold mining companies are still adjusting to the changing market. Newmont is still the biggest gold producer in the world. In 2025, it produced 5.9 million ounces of gold and made $7.3 billion in free cash flow. At the same time, Barrick Mining is working on improving its operations and getting better Tier-1 assets through joint ventures like Nevada Gold Mines. Meanwhile, the rising energy prices have squeezed the profit margin for miners, another factor limiting the gold rally.
Analysts still think that gold’s long-term path will be positive. Some forecasts suggest that prices could reach $6,000 by the end of the year because of ongoing inflation, unstable geopolitics, and supply chains for commodities that are already stretched.
