Gold retreats as fears of wider ME conflict subside

Gold prices retreated 2 per cent on Monday as easing fears of a wider Middle East conflict boosted investors' risk appetite, lowering bullion's safe-haven demand, reports Reuters.
Spot gold was down 2 per cent at $2,354.61 per ounce, as of 1148 GMT. US gold futures fell 2.4 per cent to $2,357.00.
Worries of ongoing tensions between Iran and Israel becoming an all-out war fading a little bit has stopped safe-haven trade that supported gold prices, said Ricardo Evangelista, senior analyst at ActivTrades.
Tehran downplayed Israel's retaliatory drone strike against Iran, in what appeared to be a move aimed at averting regional escalation.
Gold reached $2,417.59 per ounce in the previous session, approaching the April 12 record high of $2,431.29 as investors sought refuge in the metal's safe-haven.
Yet, as the new week began, equities regained some ground and oil prices, along with bonds, fell slightly, indicating a shift away from the defensive stance adopted by investors ahead of the weekend.
The US personal consumption expenditures (PCE) report due on Friday may confirm prevailing fears of persistent inflation, potentially postponing interest rate cuts - a negative outlook for gold, Evangelista said.
Spot silver fell 4 per cent to $27.51 per ounce.
Platinum lost 1.1 per cent to $921.60 and palladium was down 2.2 per cent at $1,004.31.