09:12 AM EDT, 03/17/2026 (MT Newswires) -- Gold rose off a one-month low early Tuesday as the dollar steadied ahead of Wednesday's interest-rate decision from the Federal Reserve's policy committee, while Middle East violence continues to weigh on markets.

Gold for April delivery was last seen up $22.10 to US$5,024.30 per ounce, after testing but sticking above the US$5,000 mark a day earlier.

The price of the metal has dropped 4.7% since the United States and Israel launched their war on Iran on Feb. 28. Gold is usually considered a safe store of value during geopolitical unrest, but investors have instead turned to the dollar and bonds as U.S. inflation remains elevated and rising oil prices threaten even higher inflation. The Federal Reserve is expected to keep interest rates unchanged Wednesday at the end to the two-day meeting of its policy committee, bearish for gold since it pays no interest.

"Gold holds above the 50-day moving average...with investors increasingly questioning whether the metal is vulnerable to a deeper correction after failing in recent weeks to behave like a traditional safe haven. The long-term case for holding hard assets remains intact; however, rising inflation concerns-lifting long-end yields and supporting a stronger dollar-have created short-term headwinds," Saxo Bank noted.

The dollar was steady early, with the ICE dollar index last seen unchanged at 99.72. Treasury yields eased, with the U.S two-year note last seen paying 3.674%, down 1.2 basis points, while the yield on the 10-year note was down 1.7 points to 4.207%.