Gold Price Slumps Amid Rising Geopolitical Tensions
The gold price is experiencing downward pressure as geopolitical tensions rise around the world. Over the weekend, Ukraine launched a large-scale drone and missile attack on Moscow and its surrounding region, escalating tensions between Russia and Ukraine.
Tensions are also increasing in the Middle East, with Trump stating that he's considering 'wiping Iran out' after attacks on Riyadh by Houthi rebels. US Treasury bond yields have risen amid a hawkish US Federal Reserve interest rate outlook, which is lifting the Greenback at the expense of non-yielding assets such as gold.
Gold traders are becoming cautious due to these geopolitical developments, supporting the US Dollar and safe-haven asset status. Oil prices have dropped to their lowest in over a week on hopes that diplomacy in the Iran war will get a chance this week amid a UN meeting.