News Digest:

Gold prices took a rollercoaster ride through April, hitting an over two-week low over hopes of a decline in Middle East tensions and held steady thereafter over hopes of better clarity around the timelines of interest rate cuts in the United States once key economic data gets released, says a news report.

Spot gold traded around $2,325.80 per ounce after earlier hitting its lowest since April 5, while the bullion’s rally from March through April drove prices up by nearly $400 to an all-time high of $2,431.29 on April 12. The spike came as fears of the Israel-Hamas battle broadening to include Iran receded as Tehran announced that it had no plans to retaliate to an earlier Israeli attack.

Takeaway:

Financial markets showed a sharper appetite for risk, resulting in gold, traditionally seen as a hedge against risk, losing some ground thereafter. Analysts noted that the markets were also awaiting US economic data and statements from the Fed over rate cuts. Current indications are that Jerome Powell would not initiate cuts in June as forecast earlier.

End Notes

Source: https://www.reuters.com/markets/commodities/gold-prices-slip-2-12-week-low-middle-east-tensions-ease-2024-04-23/