PRECIOUS METALS | Gold Slips in Early Asian Trade as Analyst Sees Further Pressure

Gold prices fell during early Asian trading. According to Jin10, Capital Economics analyst Kieran Tompkins said deteriorating risk appetite for artificial intelligence-related assets has spilled over into commodities, including gold, and that gold was among the hardest-hit assets last week. Tompkins said the metal, traditionally viewed as a safe haven, has increasingly traded like a risk asset. He noted that in the fourth quarter of last year, gold experienced sharp price swings driven by extreme speculative activity. He also said gold performed poorly during the U.S.-Iran conflict. Tompkins forecast that gold would face additional pressure as speculative enthusiasm cools and equities weaken. He added that gold’s correlation with the benchmark S&P 500 has risen to its highest level in about 14 years.