Gotrade News - Gold prices pulled back on Wednesday (Apr 15) after touching a one-month high in the previous session. Spot gold fell 0.9% to $4,798.89 per ounce while US gold futures declined 0.5% to $4,823.60 according to Reuters.
Key Takeaways
- Spot gold fell 0.9% after hitting its highest level since March 18 on routine profit-taking
- The Fed may delay rate cuts until 2027 if oil prices remain elevated from the Iran conflict
- Markets currently price in only a 32% chance of a US rate cut this year
Kitco Metals Senior Analyst Jim Wyckoff described the decline as technical and routine. "Gold and silver are simply experiencing mild profit-taking after reaching overnight highs," he said.
Wyckoff added that traders are currently more focused on tighter monetary policy implications. Gold has not been following its traditional safe-haven role in recent sessions according to Kitco.
Rate Pressure Weighs on Gold
Chicago Federal Reserve President Austan Goolsbee indicated the US central bank may wait until 2027 to cut rates. This scenario unfolds if rising oil prices from the Iran conflict delay progress on inflation.
Markets currently price in only a 32% probability of a US rate cut this year. Higher interest rates pressure gold by increasing the opportunity cost of holding non-yielding assets.
US-Iran Geopolitical Developments
President Trump stated the conflict involving Israel and Iran is nearing its end. A Pakistani military chief arrived in Tehran as a mediator to prevent renewed escalation.
However global energy distribution through the Strait of Hormuz remains disrupted despite a two-week ceasefire holding. Ship traffic has not fully recovered 45 days after Iran's Revolutionary Guards closed the strait as reported by Liputan6.
Shares of gold miners like Newmont and Agnico Eagle declined tracking the commodity price weakness. Other precious metals were mixed with silver down 0.2% to $79.40 and platinum up 0.8% to $2,119.52 per ounce.
