Gold prices rallied on Thursday following a dip to a one-month low the previous day, though gains were limited as high oil prices sustained fears of inflation and prolonged higher interest rates.
As of 0229 GMT, spot gold climbed 0.7 percent to $4,573.09 per ounce after reaching its lowest level since March 31. U.S. gold futures for June delivery rose 0.5 percent to $4,585.10.
“Gold is representing a value proposition for traders at current levels. Therefore, dip buying is contributing to gold’s recovery efforts today,” said Tim Waterer, chief market analyst at KCM Trade. He noted that while gold is attempting to recover from oversold conditions, robust oil prices and the accompanying inflation risks are capping its near-term potential.
Brent crude oil prices remained above $120 a barrel, with ongoing deadlocked U.S.-Iran negotiations heightening concerns about sustained disruptions to supply from the Middle East. Elevated oil prices contribute to rising inflation risks, which in turn increase the likelihood of higher interest rates. Although gold is often viewed as a hedge against inflation, high interest rates diminish its attractiveness as a non-yielding asset.
The Federal Reserve opted to keep interest rates unchanged on Wednesday, yet noted rising inflation concerns in its most divided stance since 1992, which included dissent from three officials who believe the central bank should not signal a bias toward lowering borrowing costs.
Current market sentiment reflects that traders are no longer pricing in Fed rate cuts this year, with expectations for a rate hike by March 2027 increasing to 30 percent, up from approximately 5 percent the previous day.
Meanwhile, U.S. President Donald Trump has engaged with oil companies to address potential impacts of a prolonged blockade of Iranian ports. According to a White House official, Trump urged Tehran to “get smart soon” and finalize a deal.
In the broader precious metals market, spot silver increased 1.6 percent to $72.63 per ounce, platinum rose 1.8 percent to $1,913.86, and palladium saw an uptick of 0.4 percent to $1,465.14.
Published on April 30, 2026.
