Gold prices experienced a slight decline on Tuesday, as investors monitored the repercussions of the conflict in West Asia and stalled US-Iran peace negotiations, which could influence the interest rate decisions of significant central banks meeting this week.
As of 0350 GMT, spot gold was down 0.2 percent at $4,670.89 per ounce, while US gold futures for June delivery also decreased by 0.2 percent to $4,684.70. According to a US official, President Donald Trump expressed dissatisfaction with the latest Iranian proposal regarding the ongoing war, dampening prospects for a resolution that has disrupted energy supplies, fueled inflation, and resulted in substantial casualties.
“Geopolitical headlines are still the main driver (of gold prices). If an agreement is reached between the US and Iran, or even an interim deal is made, the dollar is likely to weaken, and gold may experience a breakout to the upside,” stated Edward Meir, an analyst at Marex.
The US dollar showed slight gains, with oil prices remaining above $109 a barrel, as the crucial Strait of Hormuz waterway remained largely closed. Rising crude oil prices could exacerbate inflation by increasing transportation and production costs, thereby increasing the likelihood of higher interest rates. While gold traditionally serves as an inflation hedge, elevated interest rates render yield-bearing assets more appealing, which negatively impacts gold’s attractiveness.
The US Federal Reserve is anticipated to maintain interest rates at its two-day meeting concluding Wednesday. Meir remarked, “The Fed is going to be largely irrelevant. They’re not going to be doing anything on rates for now,” but he suggested a potential rate cut later in the fourth quarter due to a looming global slowdown.
Additionally, investors will be watching for decisions from other central banks this week, including the European Central Bank, the Bank of England, and the Bank of Canada.
Spot silver decreased by 1.2 percent to $74.61 per ounce, while platinum remained steady at $1,984.19, and palladium fell by 0.9 percent to $1,463.
Published on April 28, 2026.
