Gold caught between safe-haven demand, inflation fears

April 30, 2026 (MLN): Gold prices steadied on Thursday, as investors weighed safe-haven demand against mounting concerns that rising oil prices could fuel inflation and delay interest rate cuts.

Currently, spot gold is slightly down 0.79% to $4,561.69 an ounce as of [10:35 am] PST, according to data reported by Mettis Global.

A surge in global oil prices driven by intensifying tensions between the United States and Iran has increased fears of prolonged inflation, complicating the outlook for monetary policy.

The U.S. Federal Reserve kept its key interest rate unchanged at 3.5%–3.75%, adopting a wait-and-see approach as it navigates persistent price pressures, a mixed labor market, and global uncertainties.

Financial markets have since adjusted expectations, ruling out rate cuts this year and assigning a growing probability to a potential rate hike going forward.

Higher oil prices are reinforcing inflation risks, which typically supports gold. However, expectations of elevated interest rates reduce the appeal of the non-yielding metal, limiting stronger gains.

Geopolitical risks remain in focus after reports that the U.S. is exploring strategic responses related to Iran, including potential disruptions to its oil exports.

Concerns over supply shocks have pushed crude prices to their highest levels in years, adding to market volatility.

Spot silver rose 0.7% to $71.98 per ounce, platinum gained 1.8% ​to $1,912.12, and palladium was up 0.3% at $1,462.72, according to Reuters.

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