Gold Prices Plummet on Geopolitical Tensions and Oil Price Surge

Gold prices have been on a downward trend for four consecutive sessions, reaching a low of $4,302.99 per ounce as of September 2nd. This is the lowest level since August 7th.

The precious metal is still trading below its 200-day moving average, a technical threshold that many investors monitor to assess long-term trends.

Rising oil prices are putting pressure on gold due to escalating geopolitical tensions in the Middle East and developments in US-Iran relations. Oil prices have increased for three consecutive sessions, affecting energy supplies and inflationary pressures.

Strong greenbacks make gold more expensive for buyers using other currencies, while higher interest rates and bond yields decrease its relative attractiveness as an inflation-hedging tool.