Gold prices fall to late November levels as geopolitical tensions and equity declines weigh on investor sentiment.
Gold prices broke below the March low of $4097, retreating to levels last seen in late November. The decline coincides with heightened war fears and a sell-off in US equities, with the S&P 500 down 1.4% or 108 points on the day.
Earlier, both gold and stocks briefly rallied following the US CPI report but reversed as tensions escalated. Concerns over potential gold reserve sales by emerging markets to cover oil costs or currency support add downward pressure. Turkey previously sold $120 billion in reserves during the conflict.
Market sentiment remains fragile as investors await further developments, including potential US military actions and their impact on oil prices and global risk assets.