Short-term Gold Prices Likely to Drop Further on Subsided Risk Aversion Sentiment

Although the weakening of the US dollar once provided support for gold prices, the European and US banking stocks soared after the First Citizens Bank's acquisition of Silicon Valley Bank was settled, suppressing the market demand for gold. Moreover, the prices of gold have repeatedly hit the $2000/oz mark and then fallen back. Investors need to beware of further downside risks in gold prices in the short term.