Gold falls to its lowest level in more than two weeks as concerns in the Middle East subside

Gold prices fell on Tuesday to their lowest levels in more than two weeks as fears of a broader conflict in the Middle East receded, boosting investors’ appetite for risk and reducing demand for gold as a safe haven.

Gold fell in spot transactions about 1 percent to $2,304.99 per ounce by 0336 GMT. US gold futures fell 1.2 percent to $2,318.80 an ounce.

Gold fell more than two percent in the previous session, recording the largest intraday drop in more than a year, after Iran said it did not plan to respond in the wake of an apparent Israeli drone attack.

Policymakers, including Federal Reserve Chairman Jerome Powell, last week declined to provide any guidance on when interest rates might be cut, saying instead that monetary policy should be restrictive for a longer period.

High interest rates reduce the attractiveness of holding non-yielding gold.

Markets are also awaiting the release of March personal consumption expenditures data this week, which is the US Federal Reserve’s preferred measure of inflation, to derive further clues about the path of monetary policy.

In terms of other precious metals, silver rose in spot transactions 0.4 percent to $27.31 per ounce, platinum increased 0.2 percent to $919.05, while palladium fell 0.1 percent to $1,007.58.