⚡ Easily Trade – Apple, Microsoft, Tesla and Google Stocks – Open a FREE Account Here

      

Gold drops 1% to over two-week lows on reduced geopolitical risks

On Tuesday, gold prices fell to over two-week lows as fear of an escalation in the Middle East crisis prompted profit-taking following a recent rally.

Gold prices fell to over two-week lows as fear of an escalation in the Middle East crisis prompted profit-taking following a recent rally.

Broker Review Regulators Min Deposit Website
🥇 Read Review ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA USD 100 Visit Broker >>
🥈 Read Review FMA, FSA USD 50 Visit Broker >>
🥉 Read Review FSCA, CySEC, DFSA, FSA, CMA USD 0 Visit Broker >>
4 Read Review CySEC, MISA, FSCA USD 5 Visit Broker >>
5 Read Review FCA, CySEC, FSCA, SCB USD 100 Visit Broker >>
6 Read Review FCA, FINMA, FSA, ASIC USD 0 Visit Broker >>
7 Read Review CySEC, FCA, FSA, FSCA, Labuan FSA USD 100 Visit Broker >>
8 Read Review CBCS, CySEC, FCA, FSA, FSC, FSCA, CMA USD 10 Visit Broker >>
9 Read Review ASIC, CySEC, FSCA, CMA USD 100 Visit Broker >>
10 Read Review IFSC, FSCA, ASIC, CySEC USD 1 Visit Broker >>

Spot gold dropped 1.1% to $2,301.14 per ounce. Gold, silver, and palladium touched their lowest since April 5 earlier in the session, while platinum hit its lowest in three weeks.

Gold plummeted 2.7% on Monday, its biggest intraday drop in 22 months. Its March-April rebound saw the precious metal surge nearly $400 to a record high of $2,431.29 on April 12.

From a technical standpoint, the key support zone for gold using Fibonacci retracement levels is around $2,255-$2,260.

XAU/USD

Meanwhile, two crucial sectors of gold demand – central bank purchases and physical demand in China, the top consumer – remain robust and continue to provide support to the precious metal.

In another supportive factor, globally backed physically gold exchange-traded funds saw their first weekly net inflows since late 2023 last week, as increased holdings in North America and Asia offset outflows in Europe, according to the World Gold Council.

Pressured by gold’s correction, spot silver fell 1% to $26.92 per ounce. The gold-to-silver ratio rose to 86 ounces of silver per ounce of gold from 82.5 in mid-April.

Platinum declined 0.9% to $909.10, and palladium dropped 1.1% to $997.32 as they followed gold and were also pressured by the growing market share of electric vehicles.

According to the International Energy Agency, more than one in five cars sold worldwide will be electric by 2024.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
Related Articles