Gold Hits 4-week Low

Gold fell toward the $4,850 per ounce on Wednesday to trade near its lowest level in a month as surprisingly hot producer inflation reinforced expectations for a hawkish Federal Reserve policy hold. A 0.7% surge in February wholesale prices has pushed Treasury yields to 4.2% and bolstered the dollar index toward 99.9 ahead of today’s interest rate decision. While safe haven demand remains underpinned by the escalation of the Middle East conflict following the death of Iranian security chief Ali Larijani and fresh strikes on Gulf energy infrastructure, the rising opportunity cost of holding non yielding assets has capped any meaningful recovery. Investors are now focused on the FOMC dot plot and Chair Powell’s press conference to gauge if persistent inflationary heat will further delay anticipated rate cuts for 2026. Despite the 3% retreat this week, gold maintains a year to date gain of about 16% as markets navigate the fallout from disrupted shipping through the Strait of Hormuz.

Gold decreased to 4960.00 USD/t.oz, the lowest since February 2026. Over the past 4 weeks, Gold lost 0.38%, and in the last 12 months, it increased 63.25%.

Gold fell to around $4,980 per ounce on Wednesday, staying near its lowest level in a month, as investors continued to assess the impact of fluctuating oil prices on inflation ahead of the Federal Reserve’s monetary policy decision. With the Fed widely expected to leave interest rates unchanged later today, markets will closely examine the central bank’s outlook on rising energy prices and a cooling labor market. Other major central banks, including the ECB, BoE, and BoJ, are also expected to keep their policy settings unchanged. Meanwhile, the US and Israel continued overnight strikes, as Iran confirmed that national security chief Ali Larijani had been killed, following earlier Israeli claims he died in an airstrike. Tehran also pressed ahead with attacks on energy infrastructure across the Persian Gulf, while shipping through the Strait of Hormuz remained largely disrupted. Despite the recent weakness, gold is still up about 16% year-to-date.