Gold prices inch upwards despite Middle East tension; spot silver rises 1.8%
Gold rate today: Yellow metal prices steady amid geopolitical risks; higher US Treasury yields weigh Iran announced its military's preparedness to counter any potential Israeli aggression. Recently, Iran launched its inaugural direct assault on Israel, retaliating against a suspected Israeli attack on an Iranian diplomatic facility in Damascus on April 1. On Tuesday, prominent figures from the U.S.
Federal Reserve, including Chair Jerome Powell, refrained from offering insights into the timing of potential interest rate reductions. Instead, they emphasized the necessity of maintaining a tight monetary policy stance for an extended period. Currently, the market reflects a 67% likelihood of a U.S.
interest rate decrease by September. Elevated interest rates diminish the attractiveness of holding gold, which does not yield interest. FXTM senior research analyst Lukman Otunuga was quoted as saying by Reuters that while gold has generally shown little correlation with the movements of the U.S.
dollar and Treasury yields recently, it could still exhibit short-term reactions to changes in both. Spot silver experienced a 1.8% increase, reaching $28.60. Also read: Gold price eases despite Iran-Israel tensions; silver surges 1.4% According to the Silver Institute, the global silver deficit is anticipated to grow by 17% to 215.3 million troy ounces in 2024, primarily due to a 2% rise in demand driven by strong industrial consumption, coupled with a 1% decline in overall supply.
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