Gold is getting cheaper as tensions in the Middle East decrease

On Monday, gold prices fell by more than 2% amid a decrease in geopolitical risks. Quotations of June gold contracts on the New York Comex exchange fell by 2.4%, reaching $2,350 per ounce.

The exchange of strikes between Israel and Iran has caused panic about a possible escalation of the conflict in the region. Nevertheless, the Iranian authorities took a restrained position, noting the absence of serious consequences of the Israeli attack and the need to avoid new strikes.

Analysts noted that this development has reduced the risk margin in the market. Market participants also expect new statistical data from the United States. In particular, data on the PCE price index will be published on Friday, which the Federal Reserve System pays special attention to when assessing inflation risks. 

Analysts assume that the indicator grew by 2.6% in March, after it was 2.5% in February.