Gold Prices Slide 1.5% Amid U.S.-Iran Tensions and Shifting Fed Policy

Key Takeaways Precious metal prices declined approximately 1–1.5% Thursday, settling near $4,441–$4,476 per ounce Contradictory statements from Washington and Tehran regarding diplomatic negotiations are fueling market volatility Crude prices have surged past $100 per barrel as the Strait of Hormuz remains effectively blocked Traders now assign virtually no probability to a Federal Reserve rate reduction in 2024, with 38% expecting a potential increase An appreciating U.S. dollar is creating additional headwinds for bullion by raising costs for international purchasers Bullion markets experienced a downturn Thursday following a two-session rally, as market participants digested contradictory statements from American and Iranian officials regarding the status of diplomatic negotiations. Spot bullion retreated approximately 1.5% to around $4,441 per ounce. Futures contracts in the United States declined roughly 2.5% to $4,457. [[IMG_0]]Micro Gold Futures,Apr-2026 (MGC=F) The precious metal had recovered above the $4,500 threshold earlier in the week following a significant pullback, buoyed by dollar weakness and tentative optimism surrounding potential diplomatic breakthroughs. President Donald Trump characterized Iran as eager for an agreement, asserting that Tehran had suffered catastrophic military losses. He further described Iranian negotiators’ behavior as “very different and strange.” Tehran’s foreign minister countered these assertions, stating that while Iran was examining an American proposal, the nation had no plans to engage in formal negotiations aimed at concluding the hostilities. Market observers indicate gold has entered a consolidation phase. “For the immediate future, gold is confined within an established trading band,” noted Max Baecker, President of American Hartford Gold. “The market must break through the mid-$4,500 level to alter current sentiment.” Kyle Rodda from Capital.com indicated that short-term price action will be entirely headline...