In international markets, COMEX gold was last seen at $4,592.60 per ounce, up $31.10 or 0.68%. COMEX silver rose more sharply, gaining 1.78% to $72.845 per ounce.
The rebound in bullion comes after a sharp sell-off in the previous session, when gold hit its lowest level since March 31, pressured by a stronger dollar and expectations of a “higher-for-longer” interest rate environment in major economies.
However, the dollar’s recent easing has provided some relief, making dollar-denominated bullion cheaper for non-US buyers.
Market sentiment remains driven by macro and geopolitical developments.
Brent crude hovering above $119 per barrel has intensified inflation concerns, with supply risks linked to stalled US-Iran negotiations and continued uncertainty around the Strait of Hormuz, a key route for nearly 20% of global crude flows. Persistent energy-price pressures are feeding expectations that central banks may maintain restrictive monetary policy for longer.
The US Federal Reserve’s latest policy stance has further reinforced this view. While rates were held steady, policymakers flagged rising inflation concerns in one of the most divided decisions in decades, underscoring uncertainty around the timing of future rate cuts. Attention is now turning to upcoming US macroeconomic data, including GDP and core PCE inflation, which could guide near-term rate expectations.
Despite short-term volatility, underlying demand trends continue to provide structural support. The World Gold Council reported a 2% year-on-year rise in global gold demand in Q1 2026 to 1,230.9 tonnes, led by strong investment inflows into bars and coins and continued central bank buying, even as jewellery demand declined.
Analysts note that while macro headwinds persist—driven by dollar strength, rate expectations, and energy-led inflation risks—safe-haven demand and central bank accumulation may help cushion downside pressure in bullion markets, keeping volatility elevated in the near term.
-With Reuters inputs
