Gold Shows Another Notable Move To The Downside

(RTTNews) - Following the nosedive seen in the previous session, the price of gold showed another notable move to the downside during trading on Tuesday.

Gold for October delivery slumped $35.70 or 0.9 percent to $3,966.20 an ounce after plummeting $116.50 or 2.8 percent to $4,001.90 an ounce during Monday's session.

The price of gold has plunged by 3.9 percent over the last three sessions, tumbling to its lowest levels in over two weeks.

Gold plunged early in the session, as optimism about a potential trade deal between the U.S. and China has reduced the precious metal's safe haven appeal.

News of a rare metals deal between the U.S. and Japan may have increased confidence ahead of President Donald Trump's meeting with his Chinese counterpart Xi Jinping later this week.

However, the price of gold regained some ground over the course of the day amid renewed concerns about the ceasefire in Gaza.

Israeli Prime Minister Benjamin Netanyahu ordered the Israeli military to carry out "powerful strikes" in Gaza, accusing Hamas of violating the ceasefire deal by withholding the bodies of deceased hostages.

Gold also climbed off its worst levels as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday.

With the Fed widely expected to lower interest rates by another quarter point, traders will look to the accompanying statement as well as Fed Chair Jerome Powell's post-meeting comments for clues about the likelihood of further rate cuts.