Home Commodities Gold prices decline over 2%, down to one-week low; silver shreds 4.6%

Gold prices decline over 2%, down to one-week low; silver shreds 4.6%

33
0

Gold prices experienced a decrease of over 2%, reaching a one-week low, as concerns about a potential broader conflict in the Middle East eased, on Monday. This led investors to reduce their safe-haven positions and favor riskier assets such as equities.

At 9:43 a.m. ET (1343 GMT), spot gold was down 2.3% to $2,336.29 per ounce, signaling its most significant intra-day decline in over a year. Meanwhile, U.S. gold futures declined by 2.7% to $2,349.70.

Also read: Gold prices rise for sixth week on rising Iran-Israel war fears. US Fed rate, US dollar price in focus

Gold faced downward pressure as the main indexes of Wall Street began on a higher note, thereby reducing the demand for the safe-haven and non-interest-bearing asset.

The record high of $2,431.29 for gold on April 12 was fueled by geopolitical tensions alongside strong central bank purchasing.

Investors are currently anticipating cues from the release of the U.S. personal consumption expenditures (PCE) report on Friday, which will shed light on the likelihood of U.S. interest rate cuts.

“Gold prices witnessed sharp gap down move, as middle east tension were missing over the weekend there was no further escalation seen middle east which gave profit booking in Gold in Comex as prices took profit booking from 2400$ zones to 2360$ in where as in MCX a gap down of 600rs at 72150 was seen. Price further went on to be weak as profit booking continued in Gold, for week ahead price correction can continue as long as there is no new fresh trigger in middle east. 72500 will act as major hurdle for Gold in MCX,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

Also read: Gold and silver rate today on 20-04-2024: Check latest rates in your city

On Friday, Chicago Federal Reserve President Austan Goolsbee remarked that efforts to reduce inflation have “paused” this year, joining others who previously emphasized the impending necessity for rate cuts.

“Gold and Crude oil, both are down trading in the negative territory, as market participants are now looking for fresh triggers as the safe-haven demand and the risk premium due to Israel-Iran tassel seem to have eased, while a stronger U.S is seen weighing on the commodities basket. Technically, Gold looks sideways/ consolidative with support at 71,650-71,200 & Resistance at 72,400-72,850,”

Additionally, other metals experienced notable drops, with spot silver losing 4.6% to reach $27.35 per ounce, platinum declining by 1% to $922.00, and palladium falling by 1.8% to $1,008.25.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here