Israel's Ground Offensive Causes Gold to Plummet Below $2,000

Gold fell from above $2,000 an ounce as Israel's ground invasion of Gaza was less extensive than expected, easing fears of a regional escalation. Gold has been a beneficiary of the conflict, rising over 9% since Hamas attacked Israel on October 7. The precious metal is likely to continue benefiting if tensions increase and investors bet on a spillover into the wider region. However, the conflict has shifted the focus from US interest rates and Treasury yields as the main price driver for gold. The market is now closely watching rate decisions by major central banks and the Treasury Department's new borrowing plan. Spot gold declined 0.5% to $1,997.32 an ounce.