Gold prices plunged to their lowest level in nearly four weeks amid ongoing concerns over persistent inflation.

Investor sentiment weakened after U.S. President Donald Trump was reportedly dissatisfied with Iran’s latest proposal to end the conflict. Market participants are also awaiting the Federal Reserve’s monetary policy meeting scheduled for this week.

According to Refinitiv, gold prices closed at US$4,594.51 per troy ounce on Tuesday (April 28, 2026), marking a decline of 1.867%. This means that over the past two days, gold prices have dropped by around 2.4%.

This closing level is the lowest since March 30, 2026, or nearly one month. The decline also briefly pushed gold prices to the US$4,500 range for the first time this month.

Gold prices continued to weaken today. As of Wednesday (April 29, 2026) at 06:29 WIB, prices slipped 0.06% to US$4,591.37 per troy ounce.

Spot gold fell 1.7% to US$4,600.61 per ounce after earlier hitting its lowest level since April 2, while U.S. gold futures settled 1.8% lower at US$4,608.40 per ounce.

Peter Grant, Vice President and Senior Strategist at Zaner Metals, told Reuters that the situation has renewed pessimism over peace efforts in the Middle East. The Trump administration rejected Iran’s latest proposal, leaving the Strait of Hormuz effectively closed.

He noted that this condition has driven oil prices higher and reignited inflation concerns ahead of the Federal Open Market Committee (FOMC) meeting this Tuesday and Wednesday, pushing gold down to its lowest level in four weeks.

Crude oil prices also rose on Tuesday. West Texas Intermediate (WTI) surged more than 3% to close at US$99.93 per barrel, while Brent crude increased 2.8% to US$111.26 per barrel.

A U.S. official stated that Trump was not satisfied with Iran’s latest proposal to resolve the conflict. This has dampened hopes for an end to the war, which has disrupted energy supplies, fueled inflation, and resulted in thousands of casualties.

Oil prices climbed as efforts to resolve the Iran conflict reached a deadlock, leaving the Strait of Hormuz largely closed and constraining Middle Eastern supply. At the same time, the United Arab Emirates (UAE) announced its withdrawal from OPEC and OPEC+.

The surge in crude oil prices has intensified inflationary pressure and increased the likelihood that interest rates will remain elevated.

Although gold is traditionally viewed as a hedge against inflation, higher interest rates reduce its appeal since it does not yield returns.

Investors expect the Federal Reserve to keep interest rates unchanged at its meeting this Tuesday and Wednesday (U.S. time). Markets are also awaiting comments from Fed Chair Jerome Powell regarding future policy direction, which will be announced on Wednesday U.S. time or early Thursday in Indonesia.

In addition to the Fed, market participants are closely watching decisions from other central banks this week, including the European Central Bank (ECB), the Bank of England, and the Bank of Canada.

Meanwhile, China, the world’s largest gold consumer, recorded net gold imports from Hong Kong of 47.866 metric tons in March, up from 46.249 metric tons in February.

Silver prices also dropped sharply. On Tuesday (April 28, 2026), silver closed at US$73.08 per troy ounce, declining 3.2%.

However, silver prices showed a slight recovery today. As of Wednesday (April 29, 2026) at 06:30 WIB, prices edged up 0.08% to US$73.14 per troy ounce.