World Political Tension subsides followed by dim gold luster

World Political Tension subsides followed by dim gold luster

Gold Price-slumped 1 percent on Tuesday (01/21/2020) amid volatile trading due to the rise of investors taking profits (profit taking) after prices reached their highest level two weeks earlier in the session.

Quoting Reuters Wednesday (1/22/2020) precious metals cut losses and strengthen back above the level of 1,550 dollars per ounce, supported by low interest rates and geopolitical tensions.

The price of gold in the spot market fell 0.2 percent to 1,558.60 dollars per ounce after reaching its highest level since January 8, which is 1,568.35 dollars per ounce in early trading.

Meanwhile, US gold futures closed 0.2 percent lower to 1,557.90 dollars per ounce.

"We have a period of pretty good performance for gold and we are giving back some of it," said Bart Melek, TD Securities Commodity Strategy.