The Zhitong Finance App learned that gold futures continued to decline on Tuesday, recording the biggest two-day percentage drop since February last year, a drop of nearly 3%, as concerns about escalating tension in the Middle East weakened, weakening the safe-haven appeal of gold.
Ole Hansen, head of commodity strategy at Saxo Bank, believes that a pullback in gold is long overdue and healthy, and may challenge traders' beliefs that the price of gold may rise further.
Hansen said that the pullback will help determine the actual level of potential demand for gold, and the extent of the adjustment will depend on how much hedge funds sell after accumulating a large number of long positions during a period of higher gold prices.
Han Tan, chief market analyst at Exinity, said that “a healthy technical pullback is long overdue” and that as the market removes the geopolitical risk premium, gold still has “room to fall further below $2,300.”
J.P. Morgan analysts said that given recent price trends, the risk of a short-term correction in gold prices is still very high, but geopolitics is still an uncertain bullish factor. Analysts expect that by the end of 2024, the average price of gold in the fourth quarter will be 2,500 US dollars per ounce, and will rise further next year.
On Tuesday, the last month's gold price for April delivery on the New York Mercantile Exchange closed down 0.2% to $2327.70 per ounce.
The price of silver was also drastically adjusted. The price of LBMA silver fell 1.8% to 27.74 US dollars/ounce, in line with the trend of gold prices. However, in recent weeks, silver has risen faster than gold. In the past month, silver has risen 13%, while gold has risen 6.2% over the same period, but now silver is falling even faster.
Hansen said that due to the recent failure to break through $30 per ounce (the high point that silver hit in 2020 and 2021), the decline in silver has further increased.