Gold Drops to 1-Month Low

Gold fell to below $4,550 per ounce on Wednesday, the lowest in one month, amid pressure from higher energy prices and their hawkish impact on major central banks. Oil and gas prices rose further toward the turn of the month after US President Trump spoke against an imminent deal with Iran without an agreement on their nuclear arsenal, prolonging the suspension of energy exports from the Middle East. Higher energy prices already drove FOMC members to dissent against the easing bias the Fed presented in its latest policy decision, which saw their rates unchanged. Higher interest rates reduce the appeal for investors to hold non-yielding assets in bullion, denting demand for precious metals. The BoJ also presented hawkish signals in its recent meeting. The ECB and BoE is due to decide on rates tomorrow.

Gold decreased to 4554.00 USD/t.oz, the lowest since March 2026. Over the past 4 weeks, Gold gained 0.98%, and in the last 12 months, it increased 39.31%.

Gold hovered below $4,600 an ounce on Wednesday after dropping nearly 2% in the previous session to a one-month low, as stalled US-Iran peace talks and the ongoing closure of the Strait of Hormuz fueled concerns over rising inflation. President Donald Trump said Iran has called on the US to lift its naval blockade of the strait while negotiations to end the conflict continue, with disruptions already tightening energy supplies from the Middle East. The shutdown of this key passage has cut off roughly 20% of global oil flows, sparking what the IEA described as the largest supply shock on record and intensifying inflationary pressures. Investors have increasingly priced in the possibility that central banks may keep interest rates elevated for longer or even tighten further, weighing on non-yielding bullion. Earlier this week, the BOJ left its policy rate unchanged, while central banks in the US, EU, the UK, and Canada are due to announce their decisions later this week.