Gold declines as dollar, yields strengthen following US retail sales data
Gold rate today: Israel-Iran war continues to fuel gold prices despite US dollar rate touching 34-year high against Yen The dollar experienced a 0.1 per cent uptick, while 10-year Treasury yields reached a five-month peak. These movements were spurred by data indicating that U.S. retail sales surpassed expectations in March, providing further evidence of a robust end to the first quarter for the economy.
‘Gold prices rose above $2,400 to an all-time high in the previous trading session, as growing tensions in the Middle East prompted investors to seek refuge in the safe-haven assets. On the last day of previous week, tensions between Israel and Iran increased with the anticipation of US intervening, supporting an up-move in previous metals pack. A reportedly imminent attack by Iran on Israel is a real and viable threat, giving no details about possible timing.
Market participants are awaiting further clarity on any possible development in this geo-political situation. Amidst the sense of panic, Gold and Dollar index are moving in tandem, highlighting that markets focus currently is more on geo-political tensions and less on interest rate changes," said Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services. The market's current outlook anticipates fewer than two 25-basis-point cuts by year-end, a revision from the earlier expectation of three cuts.
On Friday, gold prices surged to a record high of $2,431.29, reflecting anticipation of Iran's retaliatory strike against Israel. Late Saturday, Iran launched explosive drones and missiles, marking the first attack on Israel by another nation in over three decades. This escalation has heightened concerns of a wider regional conflict.
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