Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

Trending :

Gold falls again after biggest daily slump in almost two years

Gold price retreats in Pakistan
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

April 23, 2024 (MLN): Gold extended losses after its biggest daily decline in almost two years, with easing tension in the Middle East and signs the Federal Reserve will keep rates higher for longer crimping demand, as Bloomberg reported.

The precious metal fell toward $2,300 an ounce after slumping 2.7% on Monday as concerns the conflict between Israel and Iran would escalate faded.

Tehran played down the impact and significance of Tel Aviv’s recent strike, saying that Israel has received the “necessary response at this stage.”

The easing Middle East tensions have “seen some profit taking, and there is likely to have been some tactical short-selling, given the recent surge in gold prices,” Richard Grace, a senior currency analyst and international economist at ITC Markets, said in a note.

Bullion is still up about 16% since the middle of February, with gains supported by geopolitical risk, central bank buying and demand from Chinese consumers.

The precious metal has risen despite advances in the dollar and Treasury yields on signs the Fed will delay its much-anticipated pivot.

Traders are now turning their attention to US economic data due this week, including the Fed’s preferred measure of inflation, which may give more clues on the path for monetary policy.

Policymakers have turned increasingly hawkish on the outlook for rates in recent weeks following a series of strong inflation reports.

With markets continuing to temper expectations for monetary easing this year, the precious metal may be forced to reckon with the prospect of a higher-for-longer rate environment, a scenario that would typically be a headwind for gold as it doesn’t pay interest.

Spot gold dropped 0.89% to $2,306.6 an ounce at 09:38am PST. Silver declined, after tumbling 5.2% in the previous session. Palladium and platinum also dropped.

Copyright Mettis Link News

Posted on: 2024-04-23T09:42:38+05:00