NEW YORK, April 29, 2026, 2:05 PM EDT
Gold prices dropped for the third day in a row on Wednesday, with Comex gold closing down 1.02% at $4,545.20 a troy ounce—the weakest finish since March 30. Traders are caught between the Fed’s rate outlook and jitters about inflation fueled by the Iran war.
Timing is key here. The Fed left its target rate steady at 3-1/2% to 3-3/4%, noting that inflation is still running high—“in part reflecting the recent increase in global energy prices.” Unrest in the Middle East has only muddied the outlook further. Federal Reserve
Spot gold slipped 1% to $4,550.39 an ounce by 11:37 a.m. EDT, hitting its lowest point in a month earlier in the session. U.S. gold futures tracked the drop, also off 1% at $4,563.30. “Rising U.S. Treasury yields and higher crude oil prices, which is causing inflation worries, have also been bearish for the gold market,” said Jim Wyckoff, senior analyst at Kitco Metals. Reuters
Gold tends to attract buyers during periods of climbing inflation, but with no yield, it loses some appeal as bond yields push higher or when traders expect central banks to hold rates up for an extended stretch.
Pressure rippled across markets. Brent crude hovered around $119 a barrel, U.S. crude pushed above $107, Treasury yields climbed, and the dollar strengthened as traders tracked both the Fed and fallout from the war on energy flows. “Equity markets are down because oil is spiking, the Fed is in focus,” said Gene Goldman, chief investment officer at Cetera Investment Management. Reuters
Diplomacy is driving the market here. Bloomberg noted gold kept sliding, with traders tracking potential U.S.-Iran negotiations even as the Strait of Hormuz stayed shut indefinitely, stoking inflation worries, and Washington made clear the naval blockade around Iranian ports isn’t going anywhere. A breakthrough in talks might take some of the risk premium out of gold. But a prolonged blockade? That could keep rate jitters alive and leave the metal under pressure.
Pressure hit other precious metals too, not just gold. Spot silver shed 1.6% to $71.95 per ounce. Platinum slipped 2.1% to $1,900.11, while palladium lost 1.6% to $1,436.86.
Demand’s still holding up. According to the World Gold Council, global gold demand ticked up 2% year-on-year in the first quarter, reaching 1,231 tonnes. By value, that’s a record $193 billion—bar and coin buying picked up the slack from sluggish jewelry sales and quieter ETF flows.
India’s appetite for gold investment outpaced jewellery buying for the first time ever in the March quarter, according to the World Gold Council. Sachin Jain, who heads the group’s India business, expects investment-driven demand to “become increasingly prominent” in the coming quarters. The country ranks as the world’s No. 2 gold consumer. Reuters
Powell’s press conference at 2:30 p.m. EDT sits squarely on traders’ radar this Wednesday, along with oil’s moves and any surprise word out of Iran. Gold’s got a slim margin: it needs just enough market anxiety to draw in haven buyers, but inflation worries can keep the rate squeeze firmly in place.
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