Gold prices fell on 29 April after the Federal Reserve kept rates unchanged, as expected by the market. Spot gold declined 1.2% to $4,541.30 per ounce, and the June futures contract dropped 1.3% to $4,546.20 per ounce. The Fed's decision increased pressure on gold prices amid stalled peace talks between the United States and Iran. U.S. President Donald Trump expressed dissatisfaction with Tehran's latest proposal, saying Iran told the United States that it was in a 'state of collapse' and dealing with leadership issues. Market sentiment has shifted to doubt about the likelihood of a U.S.–Iran agreement, reinforcing a higher-for-longer rate scenario, according to Zain Vawda, a market analyst at MarketPulse (OANDA). Higher rates make gold less attractive as it is a non-yield asset. Gold prices are highly sensitive to the evolving rate environment, while inflation pressures from oil prices add to the complexity. If the U.S. and Iran reach a quick deal, buying pressure could return and push gold prices to the $5,300–$5,500 per ounce range by year-end.
