Gold futures experienced a downturn on Monday (April 22) as concerns regarding tensions in the Middle East alleviated, prompting investors to retreat from the precious metal widely regarded as a safe-haven asset, and redirect their investments towards riskier assets like stocks.
Gold futures dipped by $67.40, marking a decline of 2.79%, to settle at $2,346.40 per ounce. Silver futures followed suit, witnessing a drop of 160.7 cents, or 5.52%, closing at $27.521 per ounce. Platinum futures also registered a decline of $12.50, or 1.32%, ending at $931.30 per ounce, while palladium fell by $10.80, representing a 1.05% decrease, to settle at $1,015.60 per ounce.
The market sentiment shifted as investors reassessed the situation in the Middle East, particularly after Israeli officials clarified that their recent attack on Iran, which occurred last Friday (April 19), was more symbolic in nature rather than aimed at sparking a full-scale conflict. Additionally, Iranian authorities affirmed their lack of intention to retaliate against Israel.
Daniel Ghali, an analyst at TD Securities, remarked that the reduced risk of escalation in the Middle East prompted investors to divest from gold, traditionally viewed as a safe asset during times of geopolitical uncertainty. Attention has now turned to the forthcoming release of the US Personal Consumption Expenditures (PCE) price index on Friday, which is anticipated to shed light on the Federal Reserve’s interest rate trajectory. Should the PCE index indicate a slowdown in inflation, analysts foresee a potential resurgence in gold prices, possibly surpassing previous highs.
Analysts are predicting that the Headline PCE index, inclusive of food and energy categories, will witness a year-on-year increase of 2.6% in March, following a 2.5% uptick in February. Meanwhile, the Core PCE index, excluding food and energy, is projected to rise by 2.6% year-on-year in March, following a 2.8% increase in February.
The Spot Market is Open
Tuesday, April 23, 2024
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 07.30 | 2,330.10 2,331.10 | +4.50 +0.19% | 2,324.50 2,372.50 |
| Silver 07.30 | 27.22 27.32 | +0.08 +0.29% | 27.08 28.13 |
| Platinum 07.30 | 917.00 927.00 | -1.00 -0.11% | 913.00 944.00 |
| Palladium 07.30 | 992.00 1,032.00 | 0.00 0.00% | 984.00 1,051.00 |
| Rhodium 05.00 | 4,500.00 5,300.00 | 0.00 0.00% | 4,450.00 5,300.00 |