XAU/USD Deteriorates Amid Lebanon Ceasefire Talks

Gold has been declining sharply since the start of trading this week, continuing the downward trend it has followed since last Friday. This decline has been exacerbated by news that has dominated headlines on Monday about a potential ceasefire in Lebanon, which has had a negative impact on the precious metal.

Gold has lost about $40 per ounce since news of a possible ceasefire agreement between Hezbollah and Israel emerged, a significant drop for gold futures despite the fact that talk of a ceasefire has been in the headlines for several weeks.

Gold futures have fallen to $2642 per ounce, compared to the previous day’s close of $2717 per ounce. The precious metal’s contracts rose to their highest level in the first session of the new week at $2723, before falling to a low of $2633 in the same session.

The US dollar rose last Friday, boosted by data that highlighted a weakening economy in the Eurozone, which negatively affected the single European currency. This decline in the euro was the main driver of the US dollar’s surge.