Gold ‌prices slipped on Wednesday, as rising oil prices fuelled concerns of persistent inflation and markets waited to ​hear from U.S. Federal Reserve Chair Jerome Powell as they assessed the future path of interest rates.

Spot gold ​was down ​0.6% at $4,567.56 per ounce at 1058 GMT, after falling to its lowest level since April 2 in the previous session. U.S. gold futures for June ⁠delivery fell 0.6% to $4,580.80. Efforts to end the Iran conflict were at an impasse, with U.S. President Donald Trump unhappy with the latest proposal from Tehran, and urging Iran to 'get smart soon' and sign a deal.

"Market sentiment has shifted toward skepticism regarding a potential U.S.-Iran ​agreement, reinforcing ‌the 'higher-for-longer' interest rate ⁠narrative," said Zain ⁠Vawda, analyst at MarketPulse by OANDA. The Fed is widely expected to leave interest rates unchanged at the ​end of its two-day meeting later today, while investors ‌will be keen to hear whether the central bank ⁠is looking at hiking rates later this year if inflation accelerates.

High interest rates weigh on gold's attractiveness as it's a non-yielding asset.

"Gold remains acutely sensitive to this shifting rate environment, which inflationary pressures from rising oil prices are currently exacerbating," Vawda said, adding that if the U.S. and Iran can reach a swift deal, bulls could return and push gold to finish the year between $5,300 and $5,500/oz.

Oil prices extended gains, as markets assessed a report stating that the U.S. will extend its blockade of ‌Iranian ports, likely prolonging supply disruptions from the Middle East. Global ⁠gold demand rose 2% year-on-year in the first quarter ​of 2026 as a surge in purchases of gold bars and coins, along with an increase in buying by central banks, offset a 23% decline in jewellery demand, the World Gold ​Council said ‌on Wednesday.

Spot silver fell 0.2% to $72.92 per ounce, platinum fell 0.8% ⁠to $1,924.61, and palladium was down 0.7% ​at $1,450.46.