Spot gold fell 0.2% to $2,376.90 an ounce by 09:26 ET (13:26 GMT). The yellow metal hit an all-time high of $2,431.29 on Friday in anticipation of Iran’s retaliation against Israel.
Data released Monday showed U.S. retail sales rose more than expected in March. Yields on the 10-year Treasury rose for the second day in a row, making non-yielding bullion less attractive. [US/]
“The market is in pause mode and waiting for the other shoe to drop in this Israeli-Iranian confrontation. You will see another rally in gold if the situation worsens,” said Jim Wyckoff, senior analyst at Kitco Metals .
“If the conflict in the Middle East subsides, market attention will turn to the Fed. It has become clear that the Fed will not be able to cut rates anytime soon, which is a bearish factor for gold and silver markets.
Federal Reserve Chairman Jerome Powell told a U.S. Senate panel just over five weeks ago that the Fed was “not far off” from regaining confidence that inflation would fall to the level needed to reduce interest rates, but that policymakers, investors and outside analysts have lost some confidence in the Fed. this outlook in light of a series of solid economic data. On gold, “we are raising our 3- and 12-month price targets to $2,200 and $2,000 per ounce. We recommend not positioning ourselves for lower prices now, although we remain convinced that in the medium and long term there should be more downside than up. “, wrote Carsten Menke, an analyst at Julius Baer, in a note. The Shanghai Futures Exchange announced that it would raise the trading bands for gold and silver contracts by 6% and 7%. , respectively, at 8%.
Spot silver fell 1.4% to $28.48 an ounce, platinum gained 0.3% to $971.85 and palladium fell 1.3% to $1,021.75 .
