Gold prices remained close to a one-month low on Wednesday, with demand for the metal subdued as uncertainty surrounding the Iran conflict continued to weigh on sentiment. Investors also stayed cautious ahead of the latest policy decision from the Federal Reserve.
The precious metal has come under pressure this week, as safe-haven flows have largely shifted toward the U.S. dollar. At the same time, rising oil prices—driven by expectations of a prolonged standoff between Washington and Tehran—have unsettled financial markets.
Spot gold slipped 0.1% to $4,593.04 per ounce as of 02:09 ET (06:09 GMT), while gold futures also declined 0.1% to $4,606.31 per ounce.
Performance across other precious metals was mixed, although recent losses continued to weigh. Spot silver gained 0.7% to $73.6135 per ounce, while platinum dropped 0.3% to $1,937.75 per ounce.
Trump Eyes Extended Iran Blockade – WSJ
Donald Trump has directed aides to prepare for a prolonged naval blockade targeting Iran, according to a report by The Wall Street Journal.
The approach is intended to tighten economic pressure on Tehran by restricting its oil export capabilities, with the aim of forcing progress toward a negotiated settlement.
Earlier reports indicated Trump was dissatisfied with an Iranian proposal that would have reopened the Strait of Hormuz while postponing discussions over nuclear activities.
An extended blockade could further escalate tensions, potentially prompting Iran to keep the Strait of Hormuz closed in the near term. Such a move would risk further disruption to global oil supply.
Concerns about oil-driven inflation have weighed on gold since late February. Markets fear that sustained price pressures could prompt central banks to maintain tighter monetary policy, raising the opportunity cost of holding non-yielding assets like gold and diminishing its appeal as a safe haven.
“For gold to regain stronger traction, markets may need to see either a pullback in oil prices or signs that geopolitical tensions are easing enough to revive dovish Fed pricing,” analysts at OCBC Bank said in a note.
Fed Meeting in Spotlight for Policy Direction
Attention is now firmly on the outcome of the Fed’s two-day meeting later on Wednesday, with policymakers widely expected to leave interest rates unchanged.
The decision comes as expectations build that the Fed may keep rates steady through the remainder of 2026, particularly in light of inflationary pressures tied to the Iran conflict.
Beyond the Fed, investors are also watching upcoming rate decisions from the European Central Bank and the Bank of England later this week, which could offer further insight into the global monetary policy outlook.
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