The futures contracts for both gold and silver they retreated on Monday as investors watch tensions in the Middle East de-escalate and their “appetite” turns to stocks and other “riskier” assets.
“With Iran and Israel now moving away from a head-on conflict, gold and silver have been unable to defy the weight of rising bond yields and the – perceived by some – delay in interest rate cuts by the Fed , which is postponed until the end of the year”Adrian Ash, director of research at BullionVault, told Marketwatch. “Supply remains firm, aided by geopolitical chaos in the Middle East”he added.
In this light, Mr June delivery date It fell 2.8% to $2,346.40 an ounce on the Comex, its lowest close since April 5, according to Dow Jones Market Data. The most active gold contract posted its worst decline since February 3, 2023.
The May delivery silver fell 5.5% to $27.25 an ounce, its lowest close since April 3. However, silver, meanwhile, has almost matched gold’s year-to-date rise, trading 13.1% higher this year. At the same time, in spot market, gold weakened 2.5% to $2,330.51 an ounce, its biggest daily losses in more than a year. “As the risk of immediate retaliation in the Middle East has passed, a mini sell off in gold has strengthened. The question is how much room there is for downward pressure,” said Daniel Galli, strategist at TD Securities.
