PT Solid Gold Berjangka | Gold drops more than 2% to one-week low as Middle East worries ebb
GOLD EMAS SILVER PT SGB SOLID GOLD BERJANGKA SG BERJANGKA SOLID GROUP
Solid Gold Berjangka | The drop in gold prices reflects a shift in investor sentiment away from safe-haven assets like gold towards riskier assets such as equities. The easing of concerns regarding a wider conflict in the Middle East has reduced the perceived need for safe-haven investments, prompting investors to sell off gold.
The response from Tehran to Israel’s drone strike has been relatively subdued, contributing to the decrease in geopolitical tensions. Additionally, the opening of Wall Street’s main indexes higher has diverted demand away from gold, as investors seek higher returns from equities.
Despite the recent decline, there is uncertainty about how much further gold prices could fall. Factors such as central bank buying and ongoing geopolitical tensions had previously driven gold to record highs.
Investors are now closely watching for the release of the U.S. personal consumption expenditures (PCE) report on Friday, which could provide insights into the potential for U.S. interest rate cuts. This report will likely influence gold prices in the near term.
Other metals have also seen declines, with silver, platinum, and palladium all experiencing significant drops in price.