A strong decline in gold prices during the first sessions of the week.
Gold prices experienced a significant decline in the early trading of the week on Monday, following a decrease in market fears regarding a broader escalation in the Middle East, along with a drop in gold consumption in China during the first three quarters of the year.
In this regard, data from the National Gold Association in China showed that gold consumption in the country during the period from January to September of this year fell by 11.18% to 741.732 metric tons, compared to the same period last year, as high prices led to a downturn in interest in purchasing jewelry products.
The Chinese Gold Association also reported that China's gold production from locally sourced materials decreased by 1.17% to 268.068 tons in the first three quarters of the year.
This data contributed to reinforcing the bearish momentum in gold trading today, as China is the world's largest consumer of the precious metal and the second largest producer, used in manufacturing processes.
In the Middle East, the Israeli response to Iranian attacks during the weekend was limited and did not affect vital facilities as the entity claimed, leading to a decline in market concerns regarding the escalation of conflict in the Middle East and the outbreak of a regional war. Consequently, there has been a decrease in demand for gold as investor risk appetite improved.
Current Gold Prices
Looking at today's trades, it is evident that gold prices in spot transactions have decreased by about 0.60%, losing approximately 16 dollars in value, reaching 2,730.38 dollars per ounce. At the same time, gold futures contracts fell by about 0.31% to 2,746.00 dollars per ounce.