Gold stays flat as investors weigh Middle East tensions

September 21, 2026 (MLN): Gold prices hardly moved on Monday as investors weighed what the Middle East conflict means for inflation and interest rates.

Currently, spot gold is down 0.52% to $4,355.04  an ounce as of [10:41 am] PST, according to data reported by Mettis Global.

Tensions between Washington and Tehran stayed high as both sides traded fresh threats.

US President Donald Trump warned that Iran would face economic failure or the removal of its leadership if it did not agree to a deal. Iran's military said it would respond forcefully to any new attack.

Oil prices fell as traders factored in a recovery in Saudi Arabian shipments, even as continued attacks by Yemen's Houthis added to regional tension.

Markets are also increasingly pricing in a new global cycle of monetary tightening, with several leading central banks raising rates and signalling that more hikes may be needed to contain inflation driven by the Iran war, according to CNBC.

The Bank of Japan joined the group on Friday, following the Federal Reserve's hike earlier in the week and the European Central Bank's move a week before.

Minneapolis Fed President Neel Kashkari said price pressures in the US economy were too high across all sectors.

Gold is widely seen as a hedge against inflation, but higher rates usually weigh on demand for it by making interest-bearing assets more attractive.

Among other metals, spot silver gained 0.8% to $66.76 per ounce, platinum edged up 0.2% to $1,804.33 and palladium rose 0.7% to $1,311.65.

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