Gold declines as fears of escalating tensions in the Middle East recede

Gold prices fell on Wednesday as fears of escalating conflict in the Middle East receded, while investors awaited important US economic data that may shed more light on the timing of reducing interest rates.

According to Reuters, gold fell in spot transactions by 0.1% to $2,320.19 per ounce by 0115 GMT, after reaching its lowest levels since April 5 in the previous session.

Gold prices rose by about $400 from March to April, reaching an all-time high of $2,431.29 on April 12.

US gold futures prices also fell 0.4% to $2,333.80 per ounce.

Fears of a broader regional conflict in the Middle East eased after Iran said it was not planning retaliation following an apparent Israeli drone attack.

Recent statements by Federal Reserve officials (the US central bank) indicated that there is no urgent need to lower interest rates.

Traders currently expect that the first cut in US interest rates will likely occur in September.

High interest rates reduce the attractiveness of holding non-yielding gold.

Markets are awaiting March personal consumption spending data, the Federal Reserve’s preferred measure of inflation, this week to ascertain the course of monetary policy.

As for the prices of other precious metals, silver fell in spot transactions by 0.2% to $27.24 per ounce, palladium fell by 0.1% to $1018.50, while platinum increased by 0.3% to $910.15.