Gold Falls to Lowest Level in Two Weeks
Gold dropped to its lowest level in two weeks on Monday, with the spot price falling 3.16%. Progress in trade talks between the U.S. and China reduced demand for the precious metal as a safe-haven asset.
Spot gold declined to $3,982 per ounce, while gram gold fell 3.30% to ₺5,362, marking its lowest point since October 10.
“A Return to More Rational Market Conditions”
Kyle Rodda, senior analyst at Capital, noted that the trade developments between Washington and Beijing triggered a stronger-than-expected market reaction, saying: “We are now seeing a return to more fundamental and balanced market conditions for gold.”
“Waiting Investors Re-entered the Market”
Tim Waterer, chief market analyst at KCM Trade, stated that the recent drop encouraged long-waiting investors to take new positions. “Buying activity following the softening of the U.S. dollar gave gold some short-term relief,” he said.
Eyes on Central Bank Rate Decisions
Investors are now focusing on upcoming interest rate decisions from the Federal Reserve, the European Central Bank (ECB), and the Bank of Japan (BOJ). The Fed is expected to cut rates by 25 basis points, while the ECB and BOJ are likely to keep them unchanged. Lower borrowing costs typically support non-yielding assets like gold.
