Spot Gold Falls More Than 2% to $4,411.99 an Ounce
Summary
- International gold prices fell more than 2% to $4,411.99 an ounce.
- Markets said expectations for easing geopolitical risk in the Middle East and weaker safe-haven demand added downward pressure on gold prices.
- With a stronger US dollar and Treasury yields reducing gold's appeal, markets are also watching for the possibility of increased gold-price volatility if tensions in the Middle East flare up again.
Forecast Trend Report by Period
Spot gold fell more than 2% as investors focused on easing tensions in the Middle East and the potential recovery in appetite for risk assets.
Walter Bloomberg reported on May 27 that spot gold traded at $4,411.99 an ounce, down about 2% from the previous session.
The decline came as safe-haven demand eased somewhat while the US and Iran continued talks on extending a ceasefire and normalizing shipping through the Strait of Hormuz. Expectations for lower geopolitical risk in the Middle East added pressure on gold prices.
A stronger US dollar and Treasury-yield moves also weighed on gold. The metal typically becomes less attractive when interest rates rise and the dollar strengthens.
The US and Iran remain at odds over limits on uranium enrichment and the scope of sanctions relief. Markets are also watching for the possibility of greater volatility in gold prices if tensions in the Middle East escalate again.
JH Kim
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