28.04.202611:53:41UTC+00Gold Slumps to One-Month Low

Gold dropped more than 2% to $4,570 per ounce on Tuesday, its lowest level since late March, as surging oil prices and stalled US-Iran talks intensified inflation fears ahead of key central bank meetings. A US official said President Donald Trump rejected Iran’s latest proposal to end the two-month standoff, dimming hopes for a quick resolution to energy supply disruptions that have been stoking inflationary pressures and raising the odds of further interest rate hikes. Although gold is traditionally viewed as a hedge against inflation, its appeal wanes when interest rates rise, since it does not yield income. The US Federal Reserve is widely expected to leave rates unchanged at what could be Jerome Powell’s final meeting as chair, with investors scrutinizing any hints about the future policy path. Elsewhere, the Bank of Japan kept rates steady in a split decision, and other major central banks are also expected to hold rates this week while signaling a more hawkish stance.