Gold Price Fails to Capitalize on Global Market Volatility
The gold price has been unable to capitalize on global market volatility, falling by around 1.4% to near $4,020 in New York morning trading.
This comes despite a significant shock to global equity markets, with shares in Korea plummeting almost 11% and the Nikkei 225 giving up nearly 4% overnight.
The sell-off was driven by renewed scepticism about the returns on artificial intelligence spending, leading investors to seek safe-haven assets such as government bonds and the US Dollar.
As a result, the gold price has fallen despite being built for a fear trade, with the metal's usual bid failing to materialize in response to the market shock.
The current situation is further complicated by the pause in military action against Iran, which has seen shipping through the Strait of Hormuz return to normal levels.