Gold prices fell from their record levels in Asian trading on Tuesday as a rebound in stock markets reduced some demand for safe havens.

• Gold had risen close to its record highs on Black Monday, as a crash in global equity markets drove traders toward safe havens such as bullion. Additionally, expectations of a U.S. economic recession and interest rate cuts boosted gold prices while weakening the dollar.

• The anticipation of Iran’s military response to Israel kept safe-haven demand elevated.

• Spot gold fell by 0.3% to $2,402.57 per ounce, while gold futures expiring in December dropped by 0.1% to $2,443.00 per ounce. Earlier in the week, spot prices had reached as high as $2,460 per ounce.

• On Tuesday, the yellow metal experienced some weakness as the dollar rebounded from a seven-month low.

• The sharp recovery in stock markets also diminished gold’s appeal as a traditional haven, with risk-driven assets benefiting from buying activity.

• However, gold still retains a significant portion of its recent gains, as expectations for lower interest rates have bolstered flows into the yellow metal. Lower interest rates favor gold, as they reduce the opportunity cost of investing in the non-yielding metal.

• On the other hand, Platinum futures stabilized at $918.85 per ounce, while Silver futures declined by 0.7% to $27.020 per ounce.

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