Gold dropped as much as 1 percent yesterday, drifting further away from a near 7-year peak hit in the previous session, as the prospect of an escalation in US-Iran conflict waned after the two sides softened their stance.
Spot gold fell 0,7percent to US$1 545,47 per ounce, having earlier slipped to US$1 539,78 an ounce. US gold futures dipped 0,9percent to US$1 546,50.
Following the signs that the United States and Iran are looking to defuse the crisis there is a degree of relief in markets, Ilya Spivak, a senior currency strategist at DailyFx, said.
“We did not see an immediate escalation, although it would not be accurate to say that it cannot happen, there is that risk.”
Gold, considered a safe investment in times of political and economic uncertainty, had risen as much as 2,4percent early on Wednesday and risen above the key $1,600 level for the first time in nearly seven years after Iran’s retaliatory attacks. — Reuters.
