Extends Last Week’s Decline On Monday

Gold is unchanged in the Asia-Pac session, following a 0.4% decrease on Monday.

• The decline in gold prices continues as the market anticipates further monetary tightening and a decrease in safe-haven demand.
• Last week, the precious metal experienced a 0.2% decrease, reflecting indications that both the US Fed and the ECB are likely to continue raising interest rates. This trend negatively affects gold, which does not offer interest-bearing returns.
• During this month, the price of gold has been trading within the range of $1,925 and $1,985 per ounce.
• Additional downward pressure on gold occurred on Monday after a meeting between Chinese President Xi Jinping and US Secretary of State Antony Blinken, which raised hopes of improved stability in the relationship between the two countries. Gold is often sought as a hedge against geopolitical tensions.