Gold ends in red for 3rd straight session

Gold prices finished in the red during a volatile session today, April 24, with the risk premium caused by the current geopolitical woes receding, as investors await US economic data slated for later in the week for more clues on the path of interest rates.

Bullion for June delivery plummeted by 0.15%, or $3.70, to close at $2,338.4 per ounce, declining for the third session in a row.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, inched up by 0.15% to 105.82 points at 08:57 pm Makkah time.

“The gold and silver market is seeing correction with a de-escalation in the Middle East conflict. The key question is if these corrections will turn into near-term price downtrend that would signal market tops are in place,” said Jim Wyckoff, senior analyst at Kitco Metals.

He added, “Market focus is back on economic reports and the Fed. If we see hot inflation data, then it is going to be harder for Fed to cut rates and gold could drop to below $2,200 [an ounce].”

The US gross domestic product (GDP) data is due tomorrow, April 25, a day before the release of the Personal Consumption Expenditures (PCE) report — which is the last substantive report ahead of the Federal Reserve's meeting scheduled for April 30-May 1 to decide on monetary policy.