Gold Prices Rebound from One-Month Low
Gold prices moved higher during Asian trading on Thursday, recovering from a one-month low. However, gains remained limited as markets weighed geopolitical risks and a more hawkish outlook from the Federal Reserve.
Despite the rebound, gold remained under pressure throughout April, as demand for safe-haven assets was offset by a stronger U.S. dollar and growing concerns about inflation linked to the Iran conflict.
Spot gold rose 0.5% to $4,564.12 per ounce, while gold futures gained 0.3% to $4,575.66 per ounce.
Precious Metals Follow the Uptrend
Other precious metals also recovered from recent losses. Silver climbed 1.2%, while platinum surged 2%, reflecting a broader rebound across the metals market.
Fed Signals Weigh on Gold Sentiment
Gold came under pressure after the Federal Reserve’s latest policy meeting, where interest rates were left unchanged. However, the tone of the meeting suggested a more cautious stance on future rate cuts.
Several policymakers expressed concerns about inflation risks and economic uncertainty, particularly those tied to geopolitical tensions. This shift has led traders to scale back expectations for interest rate cuts in 2026, strengthening the U.S. dollar and weighing on gold prices.
Leadership Transition at the Fed
Fed Chair Jerome Powell confirmed that he will step down from his role while remaining on the board. His potential successor, Kevin Warsh, is expected to take over soon and has signaled a cautious approach toward rate cuts.
Higher interest rates typically reduce the appeal of non-yielding assets like gold, as they increase the opportunity cost compared to interest-bearing investments.
Central Banks in Focus
In addition to the Fed, other major central banks—including the European Central Bank and the Bank of England—are also set to announce policy decisions, adding further uncertainty to global markets.
Oil Surge Adds Inflation Pressure
Energy markets contributed to the cautious tone, with oil prices climbing sharply. Brent Crude reached a four-year high, intensifying concerns over inflation.
The surge followed reports that Donald Trump is considering additional military actions involving Iran, including potential direct strikes and strategic operations.
Geopolitical Risks Continue to Impact Markets
Rising oil prices and escalating tensions in the Middle East have heightened fears of sustained inflation. This environment is pushing central banks toward more hawkish policies, which in turn has limited gold’s upside since the conflict began earlier this year.
