Gold prices fell 2% today, Tuesday, with a significant rise in Treasury yields, and the easing of concerns about the banking crisis prompted some investors to return to higher-risk assets while markets await the Federal Reserve’s (US Central Bank) next decision on interest rates.
And gold fell in spot transactions 2.1% to 1938.19 dollars an ounce (ounce) by 1731 GMT. US gold futures also fell 2.1%, to reach $1941.10 upon settlement. The precious metal recorded $ 2009.59 yesterday, the highest level since March 2022, but it has been declining since then, according to Reuters.
Trading in riskier assets, including stocks and oil, recovered after the Credit Suisse bailout eased fears of a bigger banking crisis. This made gold, traditionally considered a safe-haven asset during financial instability, less attractive.
Reuters said that attention is now turning to the results of the US Central Bank meeting, and observers expect that the bank will refrain from approving a new increase in interest rates.
With regard to other precious metals, silver fell in spot transactions by 1.2% to $22.25 an ounce, and platinum fell 2% to $968.73. Palladium fell 1.7% to $1,391.14.