Gold prices held in a narrow range on Monday as diplomatic efforts between the US and Iran stalled again, leaving energy markets unsettled and investors cautious ahead of a key Federal Reserve meeting.
Spot gold traded at $4,714.83 an ounce in Asian hours, barely moving as traders weighed a new Iranian proposal against ongoing tensions in the Middle East.
Iran submitted a new offer to the US over the weekend, according to a report from Axios. The proposal includes reopening the Strait of Hormuz while pushing discussions on Iran’s nuclear program to a later date.
That offer gave markets a brief lift. But the broader situation remained tense. US President Donald Trump canceled a planned trip by envoys Jared Kushner and Steve Witkoff to Pakistan, which has been mediating peace talks.
BREAKING: Iran through Pakistani mediators has given the US a new proposal for reaching a deal on the reopening of the Strait of Hormuz and ending the war, per Axios.
Details include:
1. Nuclear negotiations are postponed for a later stage under the deal
2. President Trump is…
— The Kobeissi Letter (@KobeissiLetter) April 27, 2026
Iranian President Masoud Pezeshkian said Iran would not enter “imposed negotiations under threats or blockade.” US and Iranian officials both left Pakistan without holding talks.
The Strait of Hormuz has been effectively closed for two months, disrupting roughly one-fifth of the world’s oil flows. The blockade is in place from both sides, with neither country showing signs of backing down fully.
Oil prices rose on Monday before trimming gains after the Axios report surfaced. The energy supply disruption has pushed up inflation concerns globally.
Higher inflation raises the chance that central banks will keep interest rates elevated for longer. That is a headwind for gold, which pays no yield and becomes less attractive when rates stay high.
Gold has dropped around 11% since the conflict started at the end of February. Analysts say the market lacks direction.
Nicky Shiels, head of research and metals strategy at MKS PAMP, said gold is in “technical no-man’s-land.” She said conviction among investors is thin and larger allocations remain sidelined.
Dilin Wu, a research strategist at Pepperstone Group, said Iran’s proposal has eased some market concerns at the margins. But she warned that any price recovery is likely to be short-lived without a clear path to peace.
Markets are also watching the Federal Reserve closely. The central bank is widely expected to hold rates unchanged at its meeting this week.
This is expected to be the last meeting chaired by Jerome Powell, whose term ends May 15. Trump’s nominee, Kevin Warsh, told Congress last week he had made no commitments to cut rates.
Warsh’s confirmation now looks set to move forward after Republican Senator Thom Tillis dropped his opposition. The Department of Justice also closed its criminal probe into Powell, which had been widely criticized.
Azerbaijan’s State Oil Fund sold around 22 tons of gold in the first quarter, worth over $3 billion. It was the first time the fund sold gold reserves since it began buying in 2012.
Silver was flat at $75.77 an ounce. Platinum rose while palladium held steady.
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