Gold recovers from a one-week low amid calming concerns in the Middle East

Gold prices rose today, Tuesday, but remain near their lowest levels in a week, which they recorded in the previous session, as fears of a broader conflict in the Middle East receded, which enhanced investors’ appetite for risk and reduced demand for gold as a safe haven.

According to Reuters, gold rose in spot transactions 0.3% to $2,333.29 an ounce by 0116 GMT. US gold futures were unchanged at $2,346.70 an ounce.

Tehran downplayed Israel’s retaliatory drone strike on Iran, in a move apparently aimed at avoiding regional escalation.

Policymakers, including Federal Reserve Chairman Jerome Powell, last week declined to provide any guidance on when interest rates might be cut, saying instead that monetary policy should be restrictive for a longer period.

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

Markets are also awaiting the release of March personal consumption expenditures data this week, which is the US Federal Reserve’s preferred measure of inflation, to derive further clues about the path of monetary policy.

In terms of other precious metals, silver rose in spot transactions 0.4% to $27.31 per ounce, platinum increased 0.2% to $919.05, while palladium fell 0.1% to $1,007.58.