Gold (XAU/USD) Price Drops Near Monthly Low of $4,555: All Eyes are on Fed Rate

Gold (XAU/USD) is under serious selling pressure on April 29, 2026, hovering near a monthly low of $4,555 after falling nearly 2% in the previous session.

Key Drivers Moving the Price

Geopolitical tensions and macroeconomic events have made gold lose ground over the past week.

Middle-East Conflict
Due to the US-Iran peace talks, the gold price was about to recover, but the partial blockade of the Strait of Hormuz and oil price hike have made gold less attractive, causing this safe haven to fall.

The UAE Left OPEC
The United Arab Emirates (UAE) recently announced it is leaving OPEC+, which pushed oil prices even higher, adding more pressure on inflation expectations and hurting gold further.

Federal Reserve Rate Decisions
As inflation expectations rise, so do bets that the Federal Reserve will maintain or even raise interest rates. According to CME Group, there is a 99.5% probability that the Fed holds rates at 3.50–3.75% today, but the market’s real focus is on what Fed Chair Jerome Powell says.

“I will make that decision based on what I think is best for the institution and for the people we serve,” Powell said.

Technical Indicator Outlook

The Relative Strength Index (RSI) hovering around 40 hints at still-soft momentum, limiting recovery attempts for now.

Key Support Zones: $4,555–$4,500
Key Resistance Zones: $4,630 → $4,684

What Should Traders Do Now?

Pausing the trades and waiting for the Fed rate release is the best move now.

• Bullish setup if Gold bounces back. Watch for gold to break and hold above $4,684. If that happens, the price may head back toward the $4,726–$4,754 zone.
• Bearish setup if Gold continues falling. If gold breaks below $4,555 and stays there, the next stop may be around $4,500–$4,450. This could happen if Powell says interest rates might go even higher because of rising inflation from the oil crisis.
• Wait for Fed Chair Powell’s decision. The best move right now is to wait for Powell’s press conference before placing any fresh positions. The Federal Reserve (Fed) monetary policy decision could send gold swinging sharply in either direction
• High-Impact news coming. Also, tomorrow’s (April 30, 2026) US Core PCE Price Index data and initial jobless data might move the price again.

“There is, in my opinion, a non-negligible possibility that the statement could incorporate a two-sided formulation that would acknowledge that rate hikes could be appropriate if inflation remains above-target,” said Chief U.S. Economist Gregory Daco to AFP.

Don’t chase the price in either direction before the Fed announcement. Use tight stop-losses if trading around event risk.