Global Gold Prices Rebound, Investors Advised to Monitor Interest Rates and Inflation
NEW YORK - Global gold prices have strengthened again amid the weakening of the US dollar and declining energy prices, serving as a signal for investors to monitor the direction of interest rates and inflation before buying.
Citing Reuters, spot gold prices rose 1.7% to $4,618.67 per ounce, after previously hitting a one-month low. Meanwhile, US gold futures strengthened 1.5% to $4,629.60 per ounce.
David Meger, Director of Metal Trading at High Ridge Futures, said that the easing of energy price increases and the weakening US dollar are providing a boost to gold. The market is now focusing on expectations for Federal Reserve (The Fed) interest rate policies.
The weakening of the US dollar occurred after Japan intervened to support the yen’s exchange rate, marking the first official action in nearly two years. This situation makes gold cheaper for holders of other currencies, thereby increasing investor interest.
Throughout April 2026, spot gold prices fell more than 1%, marking the second consecutive monthly decline amid inflation concerns due to US-Iran conflict.
As a safe-haven asset, gold is typically in demand when uncertainty rises. However, high interest rates tend to pressure its attractiveness as investors shift to interest-bearing instruments.
The Fed decided on Wednesday to hold its benchmark interest rate, but warned that inflation risks remain high. A similar stance was taken by the Bank of England, which also maintained interest rates while outlining potential economic impacts from conflicts in the Middle East.
The latest data shows that the US personal consumption expenditures (PCE) price index rose 0.7% last month, the largest increase since June 2022 and in line with economists’ forecasts.
Citi maintains its gold price projection at $4,300 per ounce for the next three months and $5,000 per ounce over the 6-12 month period ahead.
Gains were also seen in other precious metals. Spot silver prices rose nearly 3% to $73.59 per ounce, platinum surged 5.3% to $1,980.13 per ounce, and palladium increased 4.9% to $1,529.45 per ounce.