Gold Prices Fall from Near Record Highs as Dollar Strengthens and Stocks Rebound
Gold prices took a hit in Asian trade on Tuesday as a resurgence in stock markets reduced the demand for safe-haven assets. Despite this, the yellow metal remained relatively strong due to lingering market uncertainties.
On Monday, gold had reached close to record highs as global equity markets plummeted, prompting investors to seek refuge in safe havens like gold and the yen. The anticipation of a U.S. recession and potential interest rate cuts further boosted gold prices while weakening the dollar.
The ongoing tensions between Iran, Hamas, and Israel also contributed to the elevated demand for safe-haven assets.
Gold prices dropped by 0.3% to $2,402.57 an ounce, while futures contracts expiring in December fell by 0.1% to $2,443.0 an ounce. Although spot prices had momentarily spiked to $2,460 an ounce earlier in the week.
The decline in gold prices on Tuesday was attributed to the strengthening dollar and the rebound in stock markets. However, the yellow metal managed to hold onto most of its recent gains, as expectations of lower interest rates continued to attract investors.
Meanwhile, other precious metals like silver and platinum also saw some benefits from the trade, despite experiencing losses in recent sessions.
In the industrial metals sector, copper prices continued to slide amid concerns of a U.S. recession and uncertainties surrounding China. With fears of slowing demand globally, copper prices faced additional pressure.
As markets await more economic data from China, particularly regarding industrial production and retail sales, the focus remains on the potential impact of these readings on the global economy and financial markets.