Gold prices retreat amid easing geopolitical tensions

Gold prices dropped to their lowest levels in over two weeks on Tuesday, influenced by easing geopolitical tensions and investors’ caution ahead of US economic data release.

Gold continued to decline strongly for a second session in a row as the asset could remain exposed to significant price corrections after its surge.

Investors are now turning their attention to key economic indicators from the US, with the Gross Domestic Product (GDP) data set to be released on Thursday and the Personal Consumption Expenditures (PCE) index on Friday.

The data could provide insight into the Federal Reserve’s potential direction in monetary policy.

If the upcoming US data confirms ongoing inflationary pressures and strong economic resilience, expectations could further lean toward interest rates remaining high for an extended period. Despite anticipations of a rate cut in September, the prevailing hawkish tone could weigh on gold’s performance.

Additionally, the US Dollar has been maintaining its strength, hovering near its highest level since November of the previous year, and could continue to exert downward pressure on gold prices.