Gold fell more than 2% around $2,330 per ounce on Monday, retreating from record highs last week, as concerns about a wider Middle East conflict eased. This prompted investors to pivot away from safe-haven trades toward riskier assets, following Tehran’s downplaying of Israel’s retaliatory drone strike against Iran, in an effort to defuse tensions. Additionally, Chicago Fed President Austan Goolsbee noted on Friday that progress in lowering inflation has “stalled” this year, diverging from earlier predictions of impending rate cuts, limiting the allure of non-yielding assets like gold diminished with higher rates expectations. Investors are now awaiting Friday’s release of the U.S. personal consumption expenditures report for indications regarding potential U.S. interest rate cuts.
