Gold fell below the $4,700 per ounce level on Thursday as stronger-than-expected U.S. inflation data reinforced expectations that the Federal Reserve (Fed) will hold interest rates higher for longer, extending the precious metal’s losing streak to a second consecutive session.
The metal was last quoted at $4,694.95 per ounce, up a marginal 0.18 percent on the day but still down nearly 2 percent over the past month. Despite the recent pullback, gold remains more than 45 percent higher year-on-year, reflecting the sustained investor demand that drove prices to record territory earlier in 2026.
The immediate trigger for Thursday’s pressure was U.S. wholesale inflation data showing prices accelerating in April at their fastest pace since 2022, driven by higher energy and trade-related costs partly linked to ongoing geopolitical tensions surrounding the Iran conflict. The reading followed earlier data showing U.S. consumer inflation climbing to 3.8 percent in April, its highest level since May 2023.
The combined inflation prints have materially shifted market positioning. Traders have fully priced out any Fed rate cuts this year and are increasingly placing bets on the possibility of an additional rate hike before the end of 2026. Because gold yields nothing, rising interest rates increase the cost of holding the metal relative to interest-bearing assets, reducing its appeal to institutional and retail investors alike.
Market participants are also watching President Donald Trump’s visit to China for signals on trade relations and any diplomatic developments connected to the Iran situation, both of which carry implications for energy prices and risk sentiment in commodity markets.
For Ghana, Africa’s leading gold producer and a country that depends significantly on gold export revenues to support fiscal performance and foreign exchange inflows, sustained pressure on gold prices carries direct implications for government revenue projections, royalty receipts and the broader macroeconomic outlook.
