According to Reuters, gold prices experienced a significant decline on Tuesday, reaching their lowest level in over two weeks, as concerns regarding a potential escalation in the Middle East conflict diminished.
The downturn was exacerbated by profit-taking activities among investors who seized the opportunity to capitalize on recent gains in the precious metal.
As of 06:16 GMT, spot gold fell by nearly one percent to $2,306.31 per ounce, hitting its lowest point since April 5th. Similarly, US gold futures mirrored this trend, sliding 1.1 percent to $2,319.80.
Monday witnessed a substantial drop in gold prices, marking the largest intraday decline in over a year, exceeding two percent.
Spot silver followed suit, declining by 1.1 percent to $26.91 per ounce. Additionally, other precious metals observed declines, with spot platinum dropping by 1.1 percent to $908.30 and palladium slumping by 1.8 percent to $990.54.
The decision by Iran not to retaliate following an Israeli drone attack contributed to the reduction in concerns about a broader regional conflict, influencing the decline in gold prices.
Analysts at OCBC, a Singaporean bank, suggest that the decline may also be attributed to weak longs, as investors who held long positions in gold without strong conviction exited the market, leading to a more pronounced drop.
Previously, on April 12th, gold had reached a record high of $2,431.29 per ounce.
Investors’ focus for the remainder of the week will shift towards key US economic data releases, with US GDP data scheduled for release on Thursday, followed by Personal Consumption Expenditures (PCE) data on Friday.
