XAU/USD: Gold Slides as Bank Shocks Ebb

Traders are taking a break from the bullion as appetite for riskier assets improves and bank worries ease.

• Gold prices are looking to the downside early on Tuesday, following a red day to open the trading week. Against the backdrop of easing bank-sector concerns, improving risk appetite is driving traders away from gold and back into equities, crude oil, and some crypto.
• Spot prices for the yellow metal hovered near $1.950 per ounce earlier today. Last week, however, gold touched $2,000 for the first time since March 2022. Now that prices are scaling back a bit, market participants are expecting a calm environment to narrate trading.
• But will that be the case? Down the week, we’ve got exciting news that promise to bring some heightened volatility. The US will announce its quarterly GDP figure on Thursday. Expectations are pinned at a 2.7% growth rate quarter-on-quarter. And on Friday, core PCE inflation arrives.