The yellow metal continues to decline in value, causing dismay among investors and prompting them to review their current strategies. However, some analysts are confident that the precious metal will recover soon, and its downturn is a natural step before the next rise. The experts’ optimism supports investors, although some market players remain skeptical about the near-term prospects for gold.
On Monday, April 22, the precious metal sharply decreased in price against the backdrop of reduced geopolitical risks and a decrease in demand for safe-haven assets. As a result, gold lost more than 2.7%. According to specialists, the decline in Gold at the end of the day was the most significant since June 2022.
The “sunny” metal became cheaper against the background of reduced tensions in the Middle East. Such developments have reduced the risk premium in the market. Meanwhile, gold continues to fall in price after a record two-year decline.
The catalyst for the current downturn in the precious metal was the de-escalation of the conflict between Israel and Iran. Against this backdrop, many experts are pessimistic about the near-term prospects for gold. They believe that investors will turn to other sources of capital preservation. According to some specialists, the prices for the precious metal may break through the $2300 per ounce level and then plummet to $2200 per ounce. “Prepare for a significant drop in the yellow metal,” analysts warn.