Gold Prices Fall on Global Markets: Key Factors
29 April 15:18
Gold prices fell on Wednesday: rising oil prices intensified fears of persistently high inflation in the U.S., while investors focused on the outcome of the Fed meeting and comments from Fed Chair Jerome Powell, according to "Komersant Ukrainian", citing Reuters.
The spot price of gold fell 0.6% to $4,567.15 per troy ounce. U.S. President Donald Trump, dissatisfied with Tehran’s peace proposal, said that Iran’s state institutions have already been destroyed and the regime is looking for people to fill leadership positions.
“Market sentiment has shifted toward skepticism regarding a potential deal between the U.S. and Iran, reinforcing the narrative of higher rates persisting for longer,” Zane Wavda of MarketPulse by OANDA told Reuters.
The Fed is expected to keep borrowing costs unchanged on Wednesday following a two-day meeting. However, economists surveyed by the publication believe the central bank will wait at least six months before beginning to cut rates in 2026.
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High interest rates are weighing on the appeal of gold, which does not generate interest income.
“The precious metal remains extremely sensitive to changes in rate expectations, and inflationary pressure from rising oil prices is now further exacerbating this factor,” noted Vavda, adding that a swift agreement between the U.S. and Iran could restore buyer interest and push prices to the $5,300–$5,500 range by year-end.
Palladium fell 0.99% to $1,445.50 per ounce, while silver dropped 0.41% to $72.78 per ounce.
The price of platinum fell by 1.27% to $1,915.35.
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