Global Gold Prices Fall as Market Monitors US-Iran War and Fed Interest Rate Direction
NEW YORK - Global gold prices weakened at the close of trading on Monday (27/4/2026) local time, or Tuesday (28/4/2026) morning Western Indonesia Time, amid rising inflation concerns due to the Middle East conflict and uncertainty over the direction of interest rate policies by the world’s major central banks.
Citing Reuters, the spot gold price fell 0.6% to $4,682.13 per ounce. Meanwhile, the US gold futures price for June delivery weakened 1% to $4,693.70 per ounce.
The decline in gold prices occurred as there has been no diplomatic progress to end the war between the United States (US), Israel, and Iran. This situation has kept oil prices high because the Strait of Hormuz remains disrupted.
Head of Global Commodities Strategy at TD Securities, Bart Melek, said the market still doubts that a strong agreement to reopen shipping lanes in the Strait of Hormuz will be reached anytime soon.
“What we are seeing now is that the market still doubts a strong agreement to reopen the Strait of Hormuz will be achieved soon. This is a problem for gold and silver,” Melek stated.
However, US President Donald Trump previously cancelled his envoy’s trip and said Iran could contact the US if it wants to reach an agreement.
On the other hand, Brent crude oil prices rose to a three-week high because the Strait of Hormuz, a route typically used for about one-fifth of global seaborne oil and gas trade, remains largely closed.
The rise in energy prices has triggered global inflation concerns. Although gold is known as a safe-haven asset against inflation, high interest rates reduce gold’s attractiveness because it offers no yield.
“With inflation still twice as high as the target, it will be very difficult for the US central bank to cut interest rates in the coming months, and that is negative for gold,” Melek said.
Additionally, investors are also monitoring a series of meetings by the world’s major central banks for clues on interest rate directions and the war’s impact on the global economy.
Meanwhile, other precious metal prices also weakened. The spot silver price fell 0.5% to $75.26 per ounce, platinum dropped 1.1% to $1,989.13 per ounce, and palladium weakened 1.3% to $1,476.58 per ounce.