Apr 23, 2024 (MENAFN via COMTEX) --
(MENAFN) Gold prices experienced a notable decline on Tuesday, reaching their lowest levels in over two weeks, as concerns regarding a broader conflict in the Middle East eased. This shift in sentiment bolstered investors' appetite for riskier assets and consequently reduced the demand for gold, traditionally viewed as a safe haven during times of geopolitical uncertainty.
In spot transactions, gold prices fell by approximately one percent to USD2,304.99 per ounce as of 0336 GMT, while US gold futures recorded a 1.2 percent drop to USD2,318.80 per ounce. The previous session saw gold plummet by over two percent, marking its most significant intraday decline in over a year, following Iran's announcement that it did not intend to retaliate in response to an apparent Israeli drone attack.
The stance of policymakers, particularly Federal Reserve Chairman Jerome Powell, further influenced market dynamics. Powell and other policymakers refrained from providing specific guidance on potential interest rate cuts, emphasizing the need for continued monetary policy restraint over an extended period. Higher interest rates typically diminish the appeal of holding assets like gold, which do not generate yield.
Market participants are now eagerly anticipating the release of March's personal consumption expenditures data, a key indicator of inflation favored by the US Federal Reserve. This data release is expected to offer additional insights into the trajectory of monetary policy moving forward.
In the realm of other precious metals, silver saw a modest increase of 0.4 percent in spot transactions, reaching USD27.31 per ounce. Platinum also experienced a slight uptick of 0.2 percent, reaching USD919.05 per ounce, while palladium recorded a marginal decline of 0.1 percent, settling at USD1,007.58 per ounce.
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COMTEX_451305648/2604/2024-04-23T19:02:21
