gold rate today: Gold price today: Why are gold rates falling amidst Iran war? Experts predict what to expect
“Markets are starting to digest that they can’t take a single headline at face value. And part of that is President Trump and Iran changing their minds about how likely ceasefire negotiations would be,” said Will Compernolle, macro strategist at FHN Financial in Chicago.
The benchmark US 10-year bond yield decreased by 0.5 basis points from 4.346 percent to 4.341 percent, and the 30-year bond yield decreased by 1.1 basis points to 4.8948 percent.
“The focus will likely remain on the war and interest rates. If the conflict continues, oil will rise further amid tightening supply conditions, increasing inflationary pressures,” said Bart Melek, head of global commodity strategy at TD Securities.
“This situation leaves central banks, especially the Central Bank, with less room to ease policy and may even revive discussions about higher interest rates if energy prices rise further, which is a negative situation for gold,” Melek said.
Among precious metals, Gold is widely viewed as a hedge against geopolitical risks and inflation, but since it does not earn interest, it tends to be less attractive when interest rates are high.
Other items on investors’ radar include the Fed’s March policy meeting minutes on Wednesday, US Personal Consumption Expenditures (PCE) data due on Thursday and the Consumer Price Index (CPI) on Friday. The US central bank kept interest rates steady last month, and the majority of investors now see no chance of the Fed lowering interest rates this year, according to CME’s FedWatch tool.
Spot silver fell by 0.3 percent to $72.81 per ounce, platinum by 0.6 percent to $1,976.21, and palladium by 1.1 percent to $1,487.22.
