U.S.-Iran talks collapse triggers a sharp drop in gold prices, while Bitcoin quickly surges past $79k

Bitcoin rose above $79,000 during the Asian trading session on April 27, with spot gold falling to a low of $4,672.11 per ounce in the same period; the intraday decline was more than $38. The backdrop was that U.S. President Trump canceled the special envoy’s trip to Islamabad, Pakistan, and the U.S.-Iran peace talks have stalled. Federal Reserve Chair Powell is scheduled to hold what will be his last press conference for his term on April 29, as part of the Federal Open Market Committee (FOMC).

Stalled U.S.-Iran Talks and the Continued Blockade of the Strait of Hormuz

According to reports from Iran’s Tasnim News Agency, Iran’s Foreign Minister Abbas Araghchi arrived in Islamabad, Pakistan on April 26, 2026 (Sunday), and conveyed Iran’s final-war conditions to the negotiating country Pakistan through the mediator. These include implementing a new legal regime in the Strait of Hormuz, obtaining compensation, ensuring no further military aggression is launched, and lifting the naval blockade. According to Tasnim News Agency, Iran has proposed a three-stage negotiation plan, and the nuclear issue negotiations can only be launched after agreements are reached in the first two stages.

Trump subsequently canceled the special envoy Jared Kushner and Steve Witkoff’s trip to Islamabad. Iran’s President Masoud Pezeshkian said that Iran would not conduct coerced, “imposed” talks “under threats or under blockade.” The Strait of Hormuz is currently nearly impassable, and energy shipments accounting for about one-fifth of global oil flows remain disrupted.

Market analyst Shiels said: “The news roulette of ‘fire on/ fire off’ has already affected market behavior. Now gold is acting like a risk asset—negatively correlated with oil and broadly positively correlated with the stock market—so the market has little interest in chasing prices below $5,000 per ounce.”

Powell Hands Off: Policy Record From an Eight-Year Term

The current benchmark interest rate of the Federal Reserve is 3.50% to 3.75%, and the overall CPI is 3.3%, reflecting the policy status quo as Powell hands over to his successor, Wosch. According to public Federal Reserve records, the major policy actions during Powell’s eight-year term are as follows:

March 2020: Cut interest rates to zero within three weeks, restart an asset purchase program, and launch nine emergency lending facilities; the Federal Reserve’s balance sheet expanded to $9 trillion

March 2022 to 2023: Carried out the most aggressive tightening cycle since Paul Volcker, raising the policy rate from zero to 5.5%

End of 2024: At the DealBook Summit, said Bitcoin is “like gold, except it’s virtual,” and according to market data, that remark pushed Bitcoin to break above $103,000 on the day

When Federal Reserve nominee Wosch, the incoming chair, testified before the Senate Banking Committee on April 21, 2026, he said that the delayed rate hikes in 2021 were a “fatal policy error,” adding that “once inflation takes root in the economy, the cost and difficulty of suppressing inflation are higher… we need to completely change the way policy is made.”

The environment Wosch faces after taking over includes: CPI rising driven by oil prices, the Federal Reserve’s $6.7 trillion balance sheet, and inflationary pressure brought by the continued blockade of the Strait of Hormuz.

Frequently Asked Questions

What is Bitcoin’s quotation on April 27, 2026, and what is the macro backdrop on that day?

According to market data, during the Asian trading session on Monday, April 27, 2026, Bitcoin rose above $79,000. The macro backdrop on that day includes: U.S.-Iran peace talks have stalled because Trump canceled the special envoy’s trip; the Strait of Hormuz remains under blockade; and spot gold fell by more than $38 on the same day to $4,672.11 per ounce.

What is the latest current status of the U.S.-Iran negotiations?

According to reports from Iran’s Tasnim News Agency, Iran has proposed a three-stage negotiation plan and Foreign Minister Araghchi traveled to Pakistan on April 26 to convey the final-war conditions. Trump then canceled the special envoy’s trip to Islamabad, and the Iranian president said he does not accept talks under a threatened situation; negotiations between the two sides are currently at an impasse.

When is Powell’s last FOMC press conference scheduled, and when will Wosch take over?

According to the Federal Reserve’s published schedule, Powell is scheduled to preside over his last FOMC press conference of his term on Wednesday, April 29, 2026. Kevin Wosch is the successor chosen by Trump as the next Federal Reserve chair; the official start date of his tenure will be subject to the U.S. Senate’s confirmation process.