Gold prices edged lower on Monday as persistent inflation concerns continued to cloud the outlook for US monetary policy while investors remained focused on ongoing developments in Washington-Tehran negotiations.
In early trading, spot gold slipped 0.3% to $4,599.45 per ounce, while US gold futures for June delivery declined 0.7% to $4,611.40.
Uncertainty surrounding geopolitical tensions also weighed on market sentiment. US President Donald Trump said Washington would begin efforts to assist ships stranded in the Strait of Hormuz as a humanitarian step aimed at supporting neutral countries amid the ongoing US-Israel conflict with Iran.
Meanwhile, Iranian state media reported that the US had responded to Tehran’s 14-point proposal through Pakistan, with Iranian authorities currently reviewing the response.
Oil prices eased slightly but remained above $100 per barrel, reflecting continued uncertainty over a potential US-Iran agreement. Elevated oil prices may push central banks to maintain higher interest rates for longer, reducing the appeal of non-yielding assets like gold as investors shift towards better-return instruments such as government bonds.
Last week, the Federal Reserve kept its policy rate unchanged and signaled a cautious stance, dampening expectations of any rate cuts in the near term.
Neel Kashkari warned that prolonged geopolitical tensions could fuel inflation and economic risks, limiting the central bank’s ability to provide clear policy guidance. Similarly, Austan Goolsbee described recent inflation data as unfavorable, stressing the need for caution before considering rate reductions.
Recent data showed US inflation accelerated in March, with the Personal Consumption Expenditures Price Index rising 0.7% — its sharpest increase since June 2022 — largely driven by higher fuel costs linked to regional tensions.
In the broader metals market, silver rose 0.1% to $75.38 per ounce, platinum gained 0.2% to $1,991.85, while palladium declined 0.3% to $1,519.66.
Gold Prices in Pakistan Today – 24K, 22K an 18K rates on 4 May 2026
