Gold Prices Plunge as Middle East Tensions Ease and Fed Maintains Higher Rates

Gold prices continued to fall following the biggest single-day slump in nearly two years, influenced by easing Middle East tensions and indications that the Federal Reserve might maintain higher interest rates for longer. After reaching record levels earlier this month, gold dipped below $2,300 an ounce, dropping 2.7% on Monday. This decline was driven by reduced geopolitical risk as Iran downplayed the significance of recent Israeli strikes, suggesting there might be no further escalation. Richard Grace, a senior currency analyst at ITC Markets, noted that the fall could also be attributed to some tactical short-selling amid the recent surge in gold prices.