Global gold prices slipped to their lowest in over two weeks on Tuesday, reflecting easing tensions in the Middle East and profit-taking by investors awaiting key U.S. economic data for insights into the Federal Reserve’s rate policies.
As of 0336 GMT, spot gold was down nearly 1% at $2,304.99 per ounce, while U.S. gold futures fell 1.2% to $2,318.80. The precious metal had experienced a decline of more than 2% in the previous session, marking its most significant intraday drop in over a year, following Iran’s announcement that it had no plans to retaliate against an alleged Israeli drone attack.
Tim Waterer, Chief Market Analyst at KCM Trade, commented on the situation, “Gold has been the recipient of various buying flows in recent months, and now one of those flows has slightly dried up with safe-haven demand receding.” He further added, “Investors are seeing this as an opportunity to lock in some profits after gold’s recent run of good form.”
Gold had reached a record high of $2,431.29 on April 12 but has since seen a downward trend due to improved geopolitical stability and profit-taking.
This week, the economic spotlight will be on the release of gross domestic product (GDP) data on Thursday and the Personal Consumption Expenditures (PCE) report on Friday. Waterer noted the potential impact of these releases on gold prices, stating, “If these data points produce an upside surprise, we could see a further delay in interest rate relief. Such a scenario could cause the gold price to take a larger step back in the short term from an opportunity cost perspective.”
According to a Reuters poll, market forecasts anticipate a 0.3% increase in the headline PCE number for March, consistent with the previous month, and a year-on-year gain of 2.6%, up from a 2.5% increase in February.
In addition to gold, other precious metals also saw declines. Spot silver fell about 1% to $26.92 per ounce, spot platinum dropped 0.7% to $911.10, and palladium slumped 1.1% to $997.75.
The shifts in precious metal prices reflect a complex interplay of geopolitical developments, economic data, and investor sentiment. As markets continue to react to global events and economic indicators, analysts and investors alike will be closely watching for further cues on the direction of gold and other commodities.
