Gold Prices Retreat Amid Easing Geopolitical Tensions

Gold prices have retreated from their two-week highs as tensions between the US and Iran ease, leading to lower oil prices and a stronger dollar. The decline in domestic gold and silver prices follows a softening of geopolitical risks, which has impacted energy markets.

The Comex Gold contract declined by nearly 1 percent as it approached $4,100 per ounce, facing selling pressure. Brent crude oil prices have fallen significantly from approximately $96 to $84 per barrel, providing support to the Indian rupee and making gold more affordable for domestic buyers.

Investors are now shifting their focus towards the upcoming US Federal Reserve policy decision, which is expected to set the next trend for bullion markets. The market is looking for signals regarding interest rate paths, as higher rates typically increase the opportunity cost of holding non-yielding assets like gold.