Gold slumped on Thursday and was on the verge of breaking below key levels as the dropped appetite for safe haven demand and the projections of an extended period of peaked interest rates quite impacted the yellow metal.

The price of gold was recovering after plunging from all-time highs during the previous week, as prospect tension between Iran and Israel did not intensify as markets were projecting. The market for yellow gold was significantly weakened by this safe haven.

The retreat in safe havens made gold more exposed to pressure from the US interest rate trajectory, as the expected further peaked interest rate for a longer period drove up the opportunity cost of bullion investments.

Spot gold slumped by 0.1% to $2,313.62 an ounce, while gold futures dipped by 0.6% to $2,325.05 per ounce.

The solid greenback that lingered not far from the latest five-month highs, also put pressure on metal prices.

Spot prices were now on the verge of breaking below the $2,300 per ounce support level, which may signal for short term dips in gold.