Gold is currently caught in a tug-of-war between geopolitical risk and monetary policy expectations. Renewed tensions between the US and Iran have sparked fears of rising energy prices, which typically support gold as an inflation hedge. However, this bullish sentiment is being capped by the market's anticipation of further interest rate hikes from the Federal Reserve, which increases the opportunity cost of holding non-yielding assets like gold. Traders should watch for developments in Middle East stability alongside Fed signals, as a decisive shift in either could drive gold prices significantly. For now, gold remains range-bound with limited momentum.