Gold slides to four‑week low as Middle East flare lifts oil and eyes Fed decision
Spot gold fell 2.1% to $4,585.21 an ounce on Tuesday, marking its lowest level since April 2. The drop came as US President Donald Trump expressed dissatisfaction with Iran's latest peace proposal, reviving concerns over Middle East stability and inflation ahead of the Federal Reserve's policy meeting.
Oil prices jumped more than 3% after the strait remained largely closed, limiting supplies from the region. The stalled negotiations over the Iran‑U.S. conflict kept the Strait of Hormuz constrained, while the United Arab Emirates' decision to exit OPEC and OPEC+ tempered the rally.
Higher crude prices are adding to inflationary pressure, increasing the odds of tighter monetary policy. Although gold traditionally serves as an inflation hedge, rising interest rates diminish its appeal as a non‑yielding asset. Market participants expect the Fed to hold rates steady at the two‑day meeting ending Wednesday and will closely monitor Chairman Jerome Powell's comments. Other central banks, including the ECB, BoE and BoC, are also in focus this week.
China, the world's largest gold consumer, imported a net 47.866 metric tons in March, up from 46.249 tons in February, according to Hong Kong statistics. Meanwhile, spot silver slipped 3.3% to $72.99 per ounce, platinum fell 1.9% to $1,956.69, and palladium declined 0.9% to $1,463.39.
