Gold rose after the US Federal Reserve kept interest rates unchanged, despite rising inflationary risks stemming from the war in the Middle East.

The precious metal advanced as investors digested the central bank's decision to maintain the current policy stance. Market participants had been watching closely for signals on future rate moves amid growing geopolitical tensions.

The Federal Reserve's pause comes as inflation pressures persist, complicated by supply chain disruptions and energy price volatility linked to the regional conflict. Traders are now weighing the implications for monetary policy trajectory through year-end.

Analysts suggest the hold could provide near-term support for bullion, though the outlook remains dependent on evolving economic data and geopolitical developments.