Gold Prices Drop 2.5% as Middle East Tensions Ease and Haven Demand Wanes

Tehran, Iran Iran (Islamic Republic of)
Gold prices dropped by up to 2.5% on April 22, 2024.
Gold remains about 13% higher year-to-date due to central bank buying and Asian demand.
Israel and Iran tensions eased, reducing haven demand for gold.
US economic data, including inflation figures from the Federal Reserve, drew focus away from gold.
Gold Prices Drop 2.5% as Middle East Tensions Ease and Haven Demand Wanes

Gold prices took a hit on April 22, 2024, as geopolitical tensions in the Middle East eased and haven demand for the precious metal waned. The price of gold dropped by up to 2.5%, trading as low as $2,331.22 an ounce after a five-week rally.

Israel and Iran have been engaged in a series of attacks, raising concerns about an all-out war in the region. However, Tehran downplayed Israel's recent strike and signaled no retaliation, taking some risk premium out of the gold market. This news came as traders focused on US economic data, including inflation figures from the Federal Reserve.

Despite this dip in price, gold remains about 13% higher year-to-date. Central bank buying and demand from Asia, particularly China, have supported the commodity's surge to a record high despite advances in the US dollar and 10-year Treasury yields.

In other news, many gold miners are forward selling at new high price levels to secure profits amid inflation concerns. June gold was last down $57.50 at $2,356.20 an ounce, while May silver was down $1.309 at $27.50.

Sources: [1] Bloomberg: Gold Tumbles as Haven Demand Wanes Amid Easing War Risks (https://finance.yahoo.com/news/gold-backtracks-middle-east-tensions-020343999.html) [2] Bloomberg: Gold Price Lowers as Middle East Tensions Ease as Traders Look to US Data (https://www.bloomberg.com/news/articles/2024-04-22/gold-backtracks-as-middle-east-tensions-ease) [3] Kitco News: Heavy price pressure on gold, silver as risk aversion recedes (https://www.kitco.com/news/article/2024-04-22/heavy-price-pressure-gold-silver)


Article Image
Article Image
Article Image
Article Image
Article Image
Article Image

Confidence

80%

Doubts
  • Are there any significant changes in US economic data that could impact gold prices further?
  • Is there any confirmation that Iran will not retaliate against Israel's recent strike?

Sources

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Gold Price Lowers as Middle East Tensions Ease as Traders Look to US Data

Bloomberg News Now Yvonne Yue Monday, 22 April 2024 16:58
  • Unique Points
    • Gold price lowered by 2.5% to $2,331.22 an ounce after a five-week rally.
    • Geopolitical tensions in the Middle East eased, leading to waning haven demand for gold.
  • Accuracy
    • Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The author does not commit any formal or informal fallacies in the provided text. However, there is an instance of a dichotomous depiction: 'haven demand waned after geopolitical tensions eased.' This statement implies that when geopolitical tensions are high, haven demand is always present and when they ease, it disappears completely. While this might be true in some cases, it's not an absolute rule.
    • haven demand waned after geopolitical tensions eased.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Gold Tumbles as Haven Demand Wanes Amid Easing War Risks

Yahoo Finance Yvonne Yue Monday, 22 April 2024 16:59
  • Unique Points
    • Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
    • Israel downplayed Iran's response to recent attacks, signaling no retaliation.
  • Accuracy
    • Israel and Iran traded attacks but Tehran played down their significance.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Heavy price pressure on gold, silver as risk aversion recedes

Kitco News Monday, 22 April 2024 16:59
  • Unique Points
    • Many gold miners are forward selling at new high price levels.
  • Accuracy
    • Gold and silver prices are lower due to profit-taking
    • Geopolitical tensions in the Middle East eased
    • Israel and Iran traded attacks but Tehran played down their significance
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication