Gold prices have fallen to their lowest levels since March 2nd, coinciding with the start of the military conflict, settling at $4494 per ounce.
The decline follows a previous peak of $5420 per ounce as tensions initially escalated.
This unexpected downturn, defying prior expectations of continued gains as a safe haven asset, is attributed to several key factors. Notably, progress in peace negotiations between Russia and Ukraine has eased geopolitical risks, prompting investors to liquidate positions.
The strength of the U.S. Dollar and economic pressures stemming from rising energy costs have similarly played a role, encouraging investors to sell gold to free up capital for other ventures – a technical maneuver known as “profit-taking” at historical highs.
