Gold Prices Fluctuate Amid U.S. Iran Tensions and Fed Meeting

Precious metals are experiencing significant volatility as investors balance geopolitical conflict with upcoming monetary policy decisions. Gold and silver prices faced selling pressure in late April as markets awaited the April 29 Federal Open Market Committee meeting, the final session chaired by Jerome Powell. This caution coincides with a blockade of the Strait of Hormuz by the United States and Iran, which has driven crude oil prices above 100 USD per barrel.

Analysts from Reuters suggest gold will resume a broader rally in 2026, with a median forecast of 4,916 USD per ounce. This outlook follows a turbulent start to the year; gold peaked at approximately 5,595 USD in January before dropping 11% in late February following military strikes launched by the United States and Israel against Iran.

While current hawkish monetary expectations and high energy costs challenge gold's role as an inflation hedge, demand remains supported by central bank activity and concerns over U.S. debt debasement. Silver has seen more tempered expectations, with analysts slightly lowering their 2026 average price forecast to 78 USD per ounce. Markets remain sensitive to further peace talks between the United States and Iran and upcoming policy shifts from the Bank of Japan, Bank of England, and European Central Bank.