Gold prices slip amid inflation concerns & global uncertainty

ISLAMABAD: Gold prices in the global market have seen a slight decline, largely due to concerns about inflation and uncertainties over US monetary policy. Spot gold fell 0.3 percent to $4,599 per ounce, while US futures also fell to $4,611.

According to experts, investors are closely monitoring the progress of possible peace talks between the US and Iran. US President Donald Trump has announced that Washington will take steps to remove ships stuck in the Strait of Hormuz, while according to Iranian media, Tehran has received the US response through Pakistan and is reviewing it.

Meanwhile, oil prices remain above $100 per barrel, which raises concerns that central banks may keep interest rates high for a long time. In this situation, pressure increases on non-yielding investments like gold as investors turn to alternative options for better returns. The Federal Reserve took a hard line by keeping interest rates on hold last week, after which expectations of a rate cut this year have almost disappeared, with Fed officials warning that the Iran war could increase inflation risks.

According to the data, US inflation accelerated in March, where the Personal Consumption Expenditure Index recorded a 0.7% increase, the highest since June 2022. Among other metals, silver, platinum and palladium prices saw minor fluctuations.