Gold has fallen below the $4,000 an ounce mark as geopolitical risk fades, but South African investors remain focused on the metal’s long term role.
Gold prices have come under pressure as investors move away from safe haven assets following easing geopolitical tensions, with the precious metal slipping back below the $4,000 an ounce level.
The decline comes as markets continue to digest the impact of the US Iran ceasefire, a stronger dollar and rising US bond yields, which have reduced some of the demand that supported gold during periods of heightened uncertainty.
According to Anchor Capital’s latest market commentary, gold declined 0.3% on Tuesday to $4,005.95 an ounce, before falling a further 0.7% in early trading on Wednesday to around $3,978.81 an ounce.
The move marked a break below the recent trading range as the conflict risk premium continues to fade.
