Precious metals decline as traders reassess interest rate expectations despite easing US-Iran tensions.
Gold prices fell below $4,450, hitting their lowest level since March 30, as the metal struggles despite broader market optimism over US-Iran developments. The drop extends a 1% decline from yesterday, erasing early May gains and pushing prices toward key technical support levels.
The selloff follows a failed bounce near the 100-day moving average, with sellers now targeting the 200-day moving average at $4,388. That level previously halted a steep March decline, and a break below could signal further downside. Gold’s correlation with risk assets has weakened as traders focus on shifting interest rate expectations.
Precious metals surged for nearly two years amid central bank rate cuts but face pressure as markets reassess policy outlooks. Even with geopolitical risks easing, gold’s momentum has stalled, reflecting broader macroeconomic recalibration.