Gold

Gold futures prices plummeted on Tuesday, dipping below the crucial $2,300 per ounce level, as traders braced for a potential hawkish shift from the Federal Reserve in its upcoming policy decision. The precious metal, often viewed as a hedge against inflation, came under intense selling pressure amid concerns that the central bank could strike a more aggressive tone on future rate hikes.

As of 5:30 PM EDT, gold futures based on the most active June 2024 contract are down $2.10, or -0.09%, settling at $2347.50. Today's decline would have been more significant if not for the dollar's weakness. The dollar is currently down -0.26%, taking the dollar index to 105.525.

Today's release of the Personal Consumption Expenditures (PCE) price index for March revealed that inflation remains entrenched in the U.S. economy, though not as elevated as some analysts had feared. The reaction in the gold futures market was relatively muted in response to the data.

Gold futures edged higher on Thursday, with the June 2024 contract settling at $2,344.30 per ounce, up $6.20 on the day. The modest gains were supported by a weaker U.S. dollar, which lost 0.21% to fix the dollar index at 105.44.

Gold futures prices have declined for the last three consecutive days. This price decline occurred after gold futures hit a record high of $2,413.80 per troy ounce on Friday, April 19th, propelled by rising geopolitical tensions in the Middle East. That being said, gold is still showing a respectable 17.06% gain from one year ago.