Global Gold Prices Drop to Near Four-Week Low, Market Focuses on Iran Conflict and Fed Meeting
NEW YORK - Global gold prices weakened sharply, touching their lowest level in nearly four weeks at the end of trading on Tuesday (28 April 2026) local time, or Wednesday morning (29 April 2026) WIB.
The decline was influenced by rising inflation concerns due to the conflict in the Middle East, as well as investors’ focus on the outcomes of the US Federal Reserve’s monetary policy meeting.
Quoting Reuters, spot gold fell 1.7 per cent to $4,600.61 per ounce, after touching the lowest level since 2 April 2026 in the previous session.
Meanwhile, US gold futures closed down 1.8 per cent at $4,608.40 per ounce.
Vice President and Senior Metals Strategist at Zaner Metals, Peter Grant, said the market is once again concerned about the prospects for peace in the region.
“This is reigniting pessimism about the peace process in the Middle East. The Trump administration has rejected Iran’s latest offer, so the strait remains closed,” he stated.
He added that the situation is driving a surge in oil prices and heightening inflation concerns ahead of this week’s Federal Open Market Committee (FOMC) meeting.
“That situation has pushed oil prices higher and revived inflation concerns ahead of the FOMC meeting, ultimately pressuring gold prices to a four-week low,” Grant said.
A US official stated that Trump is dissatisfied with Iran’s latest proposal regarding the resolution of the war.
This has dampened hopes for a peace agreement that could restore global energy supplies.
At the same time, oil prices continue to surge due to the continued closure of most of the Strait of Hormuz, a key global energy distribution route.
The situation is worsened by the United Arab Emirates’ decision to exit OPEC and the OPEC+ alliance.
The rise in crude oil prices is increasing global inflation pressures.
Although gold is known as a hedge against inflation, high interest rates reduce the appeal of the precious metal because it offers no yield.