Gold Edges Lower Amid Potential Technical Correction

Deep News07:40

Gold experienced a slight decline in early trading, facing the possibility of a technical pullback, after the front-month gold futures contract on the COMEX rose nearly 2% overnight. Carsten Fritsch from Commerzbank Research noted in an analysis that the recent drop in oil prices is contributing to "reduced inflation risks and, consequently, lower interest rate expectations." The commodity analyst added, "This outlook has driven bond yields down, from which gold, as a non-interest-bearing investment, benefits. Whether this trend continues depends on whether a lasting peaceful solution (between the U.S. and Iran) can be reached in the coming two weeks, or if tensions will escalate again afterward." Spot gold fell 0.2% to $4,709.31 per ounce.

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