New York, April 29, 2026, 14:06 EDT
Gold dropped for the third session in a row on Wednesday, sliding to its lowest level in a month as focus turned from safe-haven flows to the potential inflation and interest rate impact of the Iran war. By late morning in New York, spot gold slipped 1% to $4,550.39 an ounce. U.S. gold futures tracked the move, also down 1%, last trading at $4,563.30.
This matters: the war’s influence on bullion is running both directions now. Gold tends to attract buyers when markets get rattled, but it doesn’t offer interest. So, when oil-fueled inflation lifts Treasury yields and pushes rate cuts further out of reach, gold feels the heat.
The Federal Open Market Committee left its target range steady at 3.5% to 3.75%, citing inflation that’s still running high, which they partly blamed on rising global energy prices. In its statement, the Fed flagged the Middle East as a source of “a high level of uncertainty” for the broader outlook. Federal Reserve
Oil prices surged, with Brent crude climbing over 7% to reach $119.34 a barrel. U.S. crude wasn’t far behind, up at $107.24. Traders are factoring in extended fallout from the U.S.-Israeli conflict with Iran and ongoing turmoil around the Strait of Hormuz, a vital passage for global energy shipments.
Gold slid up to 1.9%, dropping to a hair above $4,500, Bloomberg said, tacking onto the previous two-day slide of 2.4%. Washington, according to the same report, is holding firm on its naval blockade of Iranian ports, while mediators in Pakistan anticipate Tehran will put forward a new proposal in the next several days.
Jim Wyckoff, senior analyst at Kitco Metals, pointed to climbing U.S. Treasury yields and stronger crude oil prices as more pressure weighing on gold. He also flagged Fed Chair Jerome Powell—any unexpected move there could jolt the market.
It wasn’t just gold under fire. Spot silver slid 1.8% to $71.75 an ounce, platinum lost 2.8% at $1,886.53, while palladium dipped 0.1% to $1,458.75. Pressure from the rate and dollar moves was felt across the precious metals complex.
Comex gold dropped for a third session, settling 1.02% lower at $4,545.20 a troy ounce—its weakest close since March 30, the Wall Street Journal reported. Silver didn’t fare any better, ending down 2.25% to settle at $71.569.
The selloff has unfolded even though demand hasn’t given way. According to the World Gold Council, gold demand in the first quarter—including over-the-counter trades—rose 2% on the year, reaching 1,231 tonnes. The value side tells a different story, with demand surging 74% to a new high of $193 billion. Bar and coin buying shot up 42%. Jewellery demand, though, slid 23%, squeezed by record prices and tighter wallets.
That split hangs over the market. Investment demand stays solid, central banks keep buying, and the war keeps gold in favor as a haven. Yet with crude prices pushed higher by the conflict, inflation pressures are up, leaving the Fed treading carefully.
Gold slipped to its lowest in four weeks after diplomatic efforts in the Middle East sputtered, “revived pessimism,” as Peter Grant of Zaner Metals put it. Still, China—the world’s biggest gold buyer—boosted net imports via Hong Kong to 47.866 tonnes in March, up from 46.249 tonnes a month earlier. Reuters
Everything hinges on a quick move—up or down. Any credible agreement to reopen Hormuz might pull oil lower, easing some of the heat on rates. But if the blockade drags on or the conflict spreads, energy prices could spike right back up, and gold’s safe-haven appeal would be put to the test against climbing yields. At the moment, though, traders are still hearing inflation loudest.
