Gold slides further amid persistent inflation fears and upcoming Fed decision

Spot gold slipped 1 percent to $4,550.39 an ounce by 11:37 a.m. EDT, marking its third straight session of decline and touching a one‑month trough. U.S. gold futures mirrored the drop, falling 1 percent to $4,563.30.

Analyst Jim Wyckoff of Kitco Metals noted that investors are adjusting positions ahead of the Federal Open Market Committee meeting, while rising Treasury yields and higher crude prices are adding to inflation concerns and weighing on the metal. He warned that although gold is traditionally an inflation hedge, its appeal weakens when central banks consider rate hikes.

The backdrop includes heightened oil prices, with Brent reaching a monthly high as the conflict in the Middle East threatens supply, and U.S. Treasury yields edging upward. The Federal Reserve is expected to hold rates steady at its 2 p.m. EDT decision, followed by a press conference from Chair Jerome Powell, possibly his last as Fed chief. Kevin Warsh, President Trump's nominee, cleared a key procedural hurdle for a future Fed role.

The World Gold Council reported a 2 percent year‑on‑year increase in global gold demand for Q1 2026, driven by stronger purchases of bars, coins and a 3 percent rise in central‑bank buying, offset by a 23 percent slump in jewelry demand. In other precious metals, spot silver dropped 1.8 percent to $71.75, platinum fell 2.8 percent to $1,886.53, and palladium slipped 0.1 percent to $1,458.75.