Gold prices dips more than 2%, hits one-week low; silver plummets 4.6%

In the meantime, US gold futures fell 2.7% to $2,349.70. Geopolitical unrest and robust central bank purchases propelled gold to a record high of $2,431.29 on April 12.

Business

By Sneha Sengupta On Apr 22, 2024

On Monday, worries over a possible wider violence in the Middle East subsided, causing gold prices to drop by more than 2% and hit a one-week low. This caused investors to embrace riskier assets like stocks and lower their safe-haven holdings.

Gold’s biggest intraday drop in more than a year occurred at 9:43 a.m. ET (1343 GMT), when the metal fell 2.3% to $2,336.29 an ounce. In the meantime, US gold futures fell 2.7% to $2,349.70. Geopolitical unrest and robust central bank purchases propelled gold to a record high of $2,431.29 on April 12.

“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,” stated Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.

The possibility of interest rate decreases in the United States is expected to be revealed by the release of the personal consumption expenditures (PCE) data on Friday, which is currently anticipated by investors.

Chicago Federal Reserve President Austan Goolsbee said on Friday that attempts to lower inflation had “paused” this year.

“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,”

Other metals saw significant decreases as well. Spot silver dropped 4.6% to $27.35 per ounce, platinum dropped 1% to $922.00, while palladium dropped 1.8% to $1,008.25 dollars.

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