On Tuesday, Gold prices steadied after hitting a more than two-week low rate. This is because of the escalation of tension in the Middle East, between Israel and Iran, which drove investors towards the safe-haven metal. Economic data for further clarity on the timeline of U.S interest rate cuts.
Spot gold was little changed at US$2,325.80 per ounce by 1:40 p.m. ET (1740 GMT) after prior hitting its most reduced since April 5.
Bullion’s March to April rally drove it up by almost US$400 to an all-time high of US$2,431.29 on April 12. U.S. Gold futures settled 0.2 per cent lower at US$2,342.10.
Jim Wyckoff, senior analyst at Kitco Metals statement
“The market is in pause mode and waiting for the other shoe to drop on this Israeli-Iran confrontation. You will see another rally in gold if the situation escalates.”
Israeli strikes heightened across Gaza result of the heaviest shelling in weeks. However, fears of a wider conflict decreased after Iran announced there was no plan to retaliate following an apparent Israeli attack, and then the financial market showed signs of taking the risk.
Julia Khandoshko, CEO at European broker Mind Money stated “That has meant gold, traditionally seen as a haven from risk, has lost ground.”
Fawad Razaqzada, a market analyst at City statement
“There are many investors who have missed out on the big rally in gold and will be looking to pick up dips like these.”
Spot silver rose 0.4 per cent to US$27.29. Autocatalyst metal platinum dipped 0.5 per cent to US $912.75, while palladium gained 1.1 per cent to US$ 1,020.12.