Gold prices pull back from record high

Gold prices dipped on Tuesday after hitting a record high the day before, as the US dollar strengthened 0.1 per cent, reducing demand for the safe-haven metal, as reported by Reuters.

Spot gold fell 0.6 per cent to $2,410.73 per ounce, retreating from its peak of $2,440.49 set on Monday. US gold futures mirrored the decline, dropping one per cent to $2,414.00.

The recent rise in gold prices was driven by many factors, including expectations of US interest rate cuts due to lower inflation data, attracting investors looking for alternative investments.

The recent death of Iranian President Ebrahim Raisi in a helicopter crash added to the existing geopolitical anxieties, further driving investors towards safe-haven assets like gold.

ANZ commodity strategist Soni Kumari attributed the recent increase in gold prices to lower interest rates and geopolitical uncertainties.

She also noted that strong Chinese demand for gold bars and coins, the highest since 2017, has contributed to the price surge.

Spot silver mirrored gold’s decline, falling 1.5 per cent to $31.35 per ounce. Platinum and palladium also retreated, with platinum down 1.1 per cent to $1,035.15 and palladium dropping 1.8 per cent to $1,008.91.