Gold prices tumbled on Monday as investors weighed up fading geopolitical tensions eased and investor appetite swung towards stocks and other perceived riskier assets.
Gold based on continuous prices (GC00) (GCM24) fell $39.50, or 1.6%, to $2,374.50. That percentage drop is the biggest one-day decline since Dec. 4, 2023 when the contract tumbled 2.27%. Front-month gold for April delivery (GCJ24) marked a new record close on Friday, surging $16.10 to $2398.40 an ounce.
“With tensions in the Middle East showing signs of easing, the market’s attention shifted towards assessing the resilience of the US economy and the persistent grip of inflation,” said Ricardo Evangelista, senior analyst at ActivTrades, in a note to clients.