Gold prices fell over 1.5% in relation to the maximum on Monday.

Gold prices dropped during early Wednesday trading, falling more than 1.5% in relation to the maximum touched on Monday. The panic that hit investors after the collapse of SVB has abated, while US inflation numbers released yesterday painted a mixed image, with lower headline CPI but a higher-than-expected month-on-month core reading. Against this background treasury yields rose and the US dollar found support. The markets moved to reprice-in some of the Federal Reserve’s hawkishness that had been discounted when the stability of the financial system seemed to be at risk, halting the rush to the safe but non-yielding gold.

Ricardo Evangelista – Senior Analyst, ActivTrades

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