Gold futures sustained losses for the third consecutive day on Wednesday, April 24, as concerns surrounding the Middle East situation subsided, prompting investors to shift their focus towards pivotal US economic data expected later in the week.
Gold futures dipped by $3.70, marking a decline of 0.16%, to close at $2,338.40 per ounce. Silver futures followed suit, slipping by 1.6 cents, or 0.06%, to settle at $27.622 per ounce. Platinum and palladium futures also experienced downturns, with platinum falling by $7.00, or 0.76%, to close at $915.80 per ounce, and palladium dropping by $18.50, or 1.80%, to reach $1,008.30 per ounce.
Analyst Jim Wyckoff of Kitco Metals attributed the correction in gold and silver prices to the waning tensions in the Middle East, which has prompted investors to redirect their attention towards key economic indicators and the stance of the Federal Reserve (Fed). Wyckoff emphasized that the release of US economic data this week, particularly indicators related to inflation, will provide insights into the Fed’s potential interest rate trajectory. If the data signals a rise in inflation figures, it could complicate the Fed’s ability to enact interest rate cuts, potentially leading to a further decline in gold prices.
Additionally, the strengthening of the US dollar exerted pressure on the gold market, as indicated by the dollar index, which rose by 0.17% to 105.857. The dollar index measures the movement of the US dollar against a basket of six major currencies.
Investor attention remains fixed on the release of US gross domestic product (GDP) figures for the first quarter of 2024 on April 25, followed by the Personal Consumption Expenditures (PCE) price index on April 26. The PCE index holds significance for the Fed as a key measure of inflation, offering insights into changes in consumer behavior and covering a broader range of goods and services compared to the Consumer Price Index (CPI).
As investors await these crucial economic indicators, the direction of gold prices in the coming days will likely hinge on the interpretation of the data and its implications for the Fed’s monetary policy stance.
The Spot Market is Open
Thursday, April 25, 2024
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 07.40 | 2,317.90 2,318.90 | +3.20 +0.14% | 2,310.90 2,337.70 |
| Silver 07.40 | 27.18 27.28 | +0.09 +0.31% | 26.97 27.53 |
| Platinum 07.40 | 903.00 913.00 | +1.00 +0.11% | 899.00 928.00 |
| Palladium 07.40 | 982.00 1,022.00 | 0.00 0.00% | 980.00 1,055.00 |
| Rhodium 05.00 | 4,475.00 5,275.00 | 0.00 0.00% | 4,450.00 5,300.00 |