Global
gold prices fell to a near one-month low as inflation concerns linger amid an ongoing Middle East conflict. On April 28, the spot price of gold fell nearly $90 to $4,594 per ounce. Intraday, prices briefly dipped toward $4,550 — the lowest since April 2. Early this morning, prices edged up to about $4,602.
The market sagged as inflation fears persisted after U.S. President Donald Trump appeared dissatisfied with Iran’s latest proposal to end the conflict. Investors are also awaiting the outcome of the Federal Reserve’s policy meeting this week.
On the physical gold market, China imported a net of more than 47,800 tonnes from Hong Kong in March, up nearly 2,500 tonnes from the previous month. They are now the world's largest gold consumer.
Hà Thu (Reuters)
Gold prices at times fell more than $100 during the April 28 session. Chart: Kitco.
“Recent developments have left the market pessimistic about the progress toward a peace process in the Middle East. The Trump administration rejected Iran’s latest proposal, keeping Hormuz Strait blocked,” said Peter Grant, vice president of Zaner Metals, to Reuters.
Oil prices rose nearly 3% on April 28, fueling inflation concerns ahead of the Fed meeting. “This has pushed gold to a four-week low,” Grant explained.
Oil’s gains dampen the likelihood that central banks will cut rates. While gold is a traditional hedge against inflation, higher rates weigh on the metal since it does not pay a fixed interest.
Investors currently expect the Fed to hold rates steady at this week’s meeting. The remarks by Fed Chair Jerome Powell will also be watched, as this may be his last meeting in that role. This week, many other central banks around Europe, the UK, and Canada also meet.
From May 1, the UAE leaves OPEC and the OPEC+ alliance. In the near term, however, this is not expected to have a meaningful impact on the oil market, as Hormuz remains blocked in the short term.
On the physical gold market, China’s net imports from Hong Kong in March rose to over 47,800 tonnes, making it the world’s largest gold consumer.
Hà Thu (Reuters)
