AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

4/23/2024: Gold dips on receding Iran fears

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold dipped 0.2% to close under $2,328 despite weakness in yields and the dollar as the easing of tensions between Iran and Israel lowered safe-haven bids for a second day. Silver picked up 0.4% to $27.36 an ounce.

Following Israel's largely symbolic drone attack on areas near Isfahan late last week, Iran has signaled that it will not respond with tit-for-tat retaliation that could vastly expand warfare in the Middle East.

Worries about a wider war helped to drive gold to new record highs as global investors sought safety. Much if not all of this fear premium has left the gold price after a two-day correction of 3%.

The metal's slide was backstopped after US data showed the economy lost momentum in April. The S&P flash services PMI fell to a five-month low of 50.9, barely above contraction, while the manufacturing PMI slipped into contraction at 49.9. Companies reported declining orders and cuts in hiring.

Benchmark 10-year Treasury yields dropped back under 4.6% as traders speculated that the weaker data could entice the Fed toward rate cuts. Tracking lower with yields, the dollar dropped 0.4% against major rivals, supporting gold and other commodities by making them less expensive in other currencies.

Gold continues to be support by near-record buying by global central banks, especially China and Russia, as they hedge against G7 currency risk.

Platinum slipped 0.9% while palladium added 1.1%.

At the New York spot close: gold dipped $4.50 to $2,327.70; silver rose 12 cents to $27.36; platinum dropped $8.50 to $915.10; and palladium picked up $11.20 to $1,026.80 an ounce.