Gold prices have taken a hit, falling to a more than two-week low as tensions in the Middle East ease, prompting investors to seek profits. The declining fears of a conflict escalation have shifted focus to key US economic data releases later in the week. Spot gold dropped 0.3% to $2,318.90 per ounce after reaching its peak at $2,431.29 on April 12.
US gold futures also fell by 0.6% to $2,331.80, while other metals saw mixed movements. Platinum dipped, while palladium saw gains. The drop in gold prices is attributed to the diminishing risk appetite in the market, with Israeli strikes intensifying across Gaza but signs of a wider conflict diminishing. The US Federal Reserve’s stance on interest rates also plays a role, with no immediate plans to cut rates.
Commodity market experts note that the recent slump in gold prices is influenced by various factors, including interest rates, currency exchange rates, and political stability. The market is closely monitoring upcoming US economic data releases for further insights. Despite the current correction, experts remain optimistic about the future outlook for gold, citing sustained demand from central bank buying.
In the coming days, analysts predict potential support levels for gold prices, both in global markets and MCX. While the current correction may continue, experts emphasize the importance of closely monitoring key indicators for potential price movements. Ultimately, the future trajectory of gold prices remains uncertain, subject to global economic conditions and geopolitical developments.
