Gotrade News - Spot gold extended its weekly slide on Monday (27/04) as US-Iran negotiations remained stuck. Trump cancelled a planned envoy trip to Pakistan, deepening uncertainty around the diplomatic path.
Spot gold fell 0.5% to $4,685.14 per ounce in Asian trading, citing Bloomberg via kumparan. The decline extended a 2.5% drop from the prior week, breaking a four-week rally.
Key Takeaways:
- Gold has fallen roughly 11% since the Iran conflict began in late February.
- The Strait of Hormuz remains effectively closed, disrupting one-fifth of global oil supply.
- Markets are watching this week's Fed decision as the next directional catalyst.
Iran reiterated it will not negotiate while under military threat, hardening the stalemate. The blockade of the Strait of Hormuz keeps oil supply disrupted and inflation fears elevated.
Adrian Day of Adrian Day Asset Management said gold will stay volatile while the Iran conflict remains unresolved, citing idxchannel. Geopolitical risk continues to drive short-term price action across precious metals.
Nicky Shiels of MKS PAMP SA called market conviction thin with major allocations on hold, citing kumparan. She described current conditions as a technical zone with no clear direction.
Higher oil prices reinforce inflation pressure, raising the chance central banks hold rates higher for longer. The Federal Reserve meeting this week will be the next reference point for global investors.
Consensus expects the Fed to keep rates near 3.75%, leaving the burden on forward guidance. Any signal of a policy shift would feed through to gold positioning quickly.
Asian retail demand stayed mixed as physical buyers waited for clearer entry levels. Spot prices typically lead Asian benchmarks like Indonesia's Antam by one trading session.
