Gold Price News: Gold Edges Down After Hitting Record $2,450 An Ounce

Gold prices held up well above $2,400 an ounce on Tuesday, somewhat lower following Monday’s climb to a fresh all-time high of $2,450 an ounce.

Prices appeared to remain well supported at around the $2,410 mark at the start of the week, and the market was trading at around $2,420 an ounce by late Tuesday afternoon. That was down slightly from $2,428 an ounce in late deals on Monday.

US Fed officials gave speeches early in the week which broadly suggested a cautious stance on monetary policy, as inflation remains stubbornly above targets. This translates into ongoing uncertainty over when the central bank will start to cut interest rates, with a need to maintain the current hawkish stance for the time being.

However, a backdrop of heightened geopolitical risks continues to provide support for gold prices, and this has only intensified after the recent news that Iran’s President Ebrahim Raisi, and several others including the country’s foreign minister, had been killed in a helicopter crash. The long-term implications of the incident are unclear, but it does raise the risk of a political vacuum in Iran, which comes at a time of increased tensions in the Middle-East due to the war between Israel and Palestinian militant group Hamas.

Elsewhere, technology and precious metals trading company Heraeus issued a report on Tuesday highlighting various factors in the recent highs for gold prices. Those included declining US treasury yields and a weaker dollar, rising US/China tensions, and a potential strengthening of demand for gold in India due to a religious festival in May.

Looking ahead, the markets will be watching out for Thursday’s weekly US initial jobless claims figures, as well as Friday’s monthly durable goods orders, both of which are set to provide a status update on the US economy.