Gold falls as oil-driven inflation fears rise; investors await Fed chair comments

Gold slipped on Wednesday, April 29, as rising oil prices lifted inflation worries and traders waited for Federal Reserve Chair Jerome Powell to speak. (cnbc.com) (theedgemalaysia.com) Spot gold was down about 0.3% at $4,579.34 an ounce, while June U.S. gold futures fell 0.4% to $4,592.60 in morning trading. (cnbc.com) The move followed a sharper selloff on Tuesday, when gold fell to its lowest level since April 2 and then steadied near $4,598 early Wednesday. (cnbc.com) (brecorder.com) Gold usually benefits when investors want safety, but it also competes with assets that pay interest. When oil rises and Treasury yields climb, traders often expect the Fed to keep rates higher for longer, which can weigh on bullion. (cnbc.com) (invezz.com) This week’s pressure came from the same source driving broader markets: stalled efforts to end the Iran conflict, which kept oil elevated and inflation fears alive. Reuters-linked reports said investors were watching Powell for clues on how the war and energy prices could affect the U.S. economy. (theedgemalaysia.com) (cnbc.com) The pullback is notable because gold had been much stronger just days earlier. On April 24, spot gold was around $4,661 and was heading for a weekly drop after a four-week winning run. (cnbc.com) Even with the short-term slide, the broader backdrop has not fully turned. Trading Economics data showed gold around $4,555 on April 29, still roughly 39% above a year earlier. (tradingeconomics.com) Analysts cited in market coverage said central-bank buying is still supporting the medium-term case for gold, even as day-to-day trading is being driven by oil, yields and Fed expectations. (fxleaders.com) (invezz.com) For now, the market is treating gold less like a pure refuge and more like an interest-rate trade, with Powell’s comments the next test. (invezz.com)