Gold prices briefly recovered after falling to below $2,300, the biggest daily drop in nearly two years, influenced by weaker-than-expected U.S. business activity in April. This slowdown, marked by the first employment decline since 2020 and a contraction in the manufacturing and services sectors, has led to speculation about potential Federal Reserve rate cuts. Such cuts could benefit non-interest bearing assets like gold. However, despite a momentary lift from lower bond yields and a weaker dollar following the economic report, gold prices relinquished their gains amid diminishing geopolitical tensions in the Middle East.
Posted: 2024-04-24 09:11:28.000000