Gold prices dropped 2.8% in April to an average of $4,721 per ounce, a second straight monthly decline driven by rising United States bond yields and investors locking in gains amid shifting expectations over Federal Reserve rate cuts, according to the Organization of the Petroleum Exporting Countries (OPEC) monthly oil market report.
Despite the pullback, prices remained 46.7% higher than a year earlier, reflecting the scale of gold’s prolonged rally since early 2025, fueled by central bank buying, geopolitical risk and early expectations of looser monetary policy.
OPEC said investor appetite for safe haven assets weakened during the month as higher real interest rates reduced the allure of non-yielding bullion. Profit taking accelerated as traders adjusted to the reality that the Federal Reserve was unlikely to cut rates as quickly as markets had previously anticipated.
The broader precious metals complex mirrored gold’s decline. OPEC’s precious metals index fell 2.7% in April, marking a second successive monthly drop across the sector. Silver retreated 2.6% during the period while platinum eased 0.9%.
Investor positioning data pointed to wider caution across commodity markets. Combined money manager net positions across major commodities including crude oil, natural gas, gold and copper declined 13.1% in April from the prior month, as traders reduced exposure amid heightened market volatility.
Elevated inflation added further uncertainty to the monetary policy outlook. OPEC reported that United States headline inflation accelerated to 3.8% in April while Eurozone inflation climbed to 3.1%, keeping the timeline for rate reductions unclear.
Still, gold’s losses were cushioned by persistent geopolitical tensions. OPEC noted that ongoing instability in the Middle East continued to support broader commodity markets and kept safe haven demand from evaporating entirely, limiting the depth of the monthly correction.
Central bank buying and structural inflation concerns have anchored bullion near historically elevated levels, and analysts broadly expect underlying demand to remain supportive even as short-term headwinds from monetary policy expectations persist.
