Gold falls as geopolitical tensions ease

Gold fell as geopolitical tensions in the Middle East eased, haven demand waned and investors focused on U.S. data that could shed light on the monetary policy outlook. Bullion traded just below $2,364 an ounce after a five-week rally, the longest streak of record prices in more than a year. As Israel and Iran’s reciprocal attacks have raised concerns about an all-out war in the region, Tehran has downplayed the impact and significance of Israel’s latest strike and downplayed the low success rate of its own. Beyond the Middle East, investors are focused on U.S. economic data. On Friday, the personal consumption expenditures price index is expected to show that the annual rate rose to 2.6% last month from 2.5% in February. That would support the thesis that Fed policymakers will delay rate cuts, a scenario that would weigh on gold because it usually doesn’t pay interest. Gold is still up nearly 15% so far this year, boosted by central bank purchases and gains from demand in Asia, particularly China. The commodity rose despite gains in the U.S. currency and 10-year Treasury yields, factors that typically work in the opposite direction. Banks including Goldman Sachs are raising their price targets for the metal. Spot gold fell 1.2% to $2,363.55 an ounce as of 11:27 a.m. Singapore time, while 10-year Treasury yields rose and the Bloomberg Dollar Spot Index was little changed. Silver lost nearly 3% after four weeks of gains. Palladium and platinum also traded lower.