ALBAWABA – Gold, which is up about 16 percent since the start of the year, has started the week with a magnificent drop in price, as investors weigh in lack of geopolitical escalations during the weekend, causing a surge in the stock market away from the safe haven of gold.
Trading at a bottom of $2,331.22 an ounce, gold saw a historical 2.5 percent drop on Monday, ending a bull streak that lasted five consecutive weeks, according to Bloomberg, citing Tehran’s declaration on Monday that Israel had gotten the "necessary response at this stage," downplaying the importance and effect of Israel's most recent attack as reason.
With Adrian Ash, director of research at BullionVault, speaking to MarketWatch about the price fall, saying that “with Iran and Israel apparently backing away from any further direct confrontation for the time being, there was only so long that gold and silver could defy the gravity of rising bond yields and rising year-end [Federal Reserve interest] rate forecasts.”
Regarding potential progress for Gold, Cristopher Lewis from FXEmpire analyses that “markets will either go sideways and try to work off some of the excess froth or they’ll pull back and I think both of these are very likely outcomes,” adding “because of this I’m not rushing in to buy gold. But if I do see a bit of a bounce, I probably will add a bit more.”
