Gold prices fell more than 1% in Tuesday's trading session, extending the decline to the 10th consecutive session in the context of the USD remaining at a high level and expectations of the US Federal Reserve (Fed)'s short-term loosening of monetary policy.
Spot gold price increased by 0.5% to 4,423.01 USD/ounce at 2:55 PM Vietnam time. Previously, in the adjacent session, this precious metal once fell to 4,340.63 USD/ounce before buying power reappeared in the latest trading session.
US gold futures for April delivery also rose 0.1% to $4,442.94/ounce.
The rising USD in Tuesday's session made gold more expensive for investors holding other currencies, thereby adding pressure on the precious metals market.
Mr. Ilya Spivak - Global Macro Division Director at Tastylive - said that the market is adjusting monetary policy expectations in a more cautious direction, contributing to creating pressure on gold prices in the short term.
According to him, the near support zones of gold prices are currently around 4, 275 USD/ounce and 4,000 USD/ounce, while the resistance zones are defined at 4, 650 USD/ounce and 4,840 USD/ounce.
Since the conflict between the US and Israel with Iran began on February 28, spot gold prices have fallen by about 18%, while the USD has emerged as one of the assets that investors are more interested in during the volatile period of the market.
On Monday, Iran denied having exchanges with the US after President Donald Trump announced the postponement of the plan to attack the country's power system and said there had been "constructive" exchanges with some Iranian officials.
According to Reuters sources, a Pakistani official and another source said that direct exchanges aimed at ending the conflict could be held in Islamabad this week.
Meanwhile, data from CME Group's FedWatch tool shows that investors have down-adjusted expectations about the possibility of the Fed raising interest rates in December, with the probability currently at about 13%, compared to over 25% in the previous session.
Not only gold, other precious metals also increased slightly in price. Spot silver price increased 0.75% to 69.6745 USD/ounce. Platinum prices increased 0.3% to 1,889.41 USD/ounce and palladium increased 0.3% to 1,435 USD/ounce.
