Gold prices tumbled on Tuesday, touching their lowest level in over two weeks, as concerns about a major escalation in the Middle East conflict waned, according to Reuters.
This decline was further fuelled by profit-taking from investors who saw an opportunity to lock in gains after a recent strong run for the precious metal.
Spot gold dropped nearly one per cent to $2,306.31 per ounce by 06:16 GMT, having hit its lowest point since April 5th earlier in the day. US gold futures mirrored this trend, slipping 1.1 per cent to $2,319.80.
Gold prices dropped significantly on Monday, marking their largest intraday decline in over a year at more than two percent.
Spot silver followed a similar trajectory, falling 1.1 per cent to $26.91 per ounce. Other precious metals also saw declines, with spot platinum dropping 1.1 per cent to $908.30 and palladium slumping 1.8 per cent to $990.54.
This decline was influenced by Iran’s decision not to retaliate after an Israeli drone attack, reducing concerns about a broader regional conflict.
Analysts at the Singaporean bank OCBC believe the decline might have also been fuelled by weak longs (investors who had held long positions in gold but lacked strong conviction) exiting the market, leading to a larger drop.
Previously, on April 12th, gold had reached a record high of $2,431.29 per ounce, as per the statement.
The focus for investors this week will shift towards key US economic data releases. Thursday will see the release of US GDP data, followed by Personal Consumption Expenditures (PCE) data on Friday.
