Gold Price Falls to One-Month Low as Fed Holds Rates Steady Amid Inflation Concerns

Gold Market Retreats Following Federal Reserve Decision

Gold prices dropped further on April 29, 2026. The U.S. Federal Reserve did not change interest rates. Gold fell 1.4% to $4,528.17 per ounce. U.S. gold futures closed 1% lower at $4,561.50. The Fed split on its view. The split shows worry over higher prices and no hint of coming rate cuts. This change made gold less attractive.

Inflation, Middle East Tensions, and Fed Policy Influence Gold Investing

Several factors changed the gold price:

• The Fed did not move rates but removed a bias for lower rates. Three officials did not agree. This put more strain on gold.
• Inflation risks grew. Global oil prices stayed above $100 a barrel. This happened as U.S. forces clashed with Iran.
• Political risks like a long U.S. hold on Iran’s ports and Iran’s threats raise the chance of more fights.

Many traders think rates will stay the same until next year. This view makes gold less useful against a loose money plan.

Mixed Global Demand for Gold and Related Metals

Global gold use grew by 2% in Q1 2026 even as prices fell. The World Gold Council gave this report. The gain came from:

• More gold bars and coins bought.
• Central banks buying 3% more gold.

These gains made up for a 23% fall in jewelry buys. Consumers now choose gold with care in a mixed market.

Other metals lost value too:

• Silver fell 2.7% to $71.08 per ounce.
• Platinum dropped 3% to $1,881.21 per ounce.
• Palladium went down 0.4% to $1,454.52 per ounce.

Conclusion: Fed Policy and Inflation Key to Gold Price Direction

Gold’s fall comes from a mix of the Fed’s steady yet divided choice on rates, rising price risks from energy costs, and fights in the Middle East, along with changes in global buying. Banks and many consumers keep buying bullion. Still, worries over higher rates and price rises hold back safe-haven demand. Traders will watch Fed steps and global talks as main drivers for gold prices.

This gold news update is based solely on Reuters reporting as of April 29, 2026.

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