World gold price drops more than 1% due to profit-taking wave

Meanwhile, the market is still focused on the developments in tensions between Israel and Iran as well as the US Federal Reserve's policy meeting this week.

At around 00:53 on June 17, Vietnam time, the spot gold price fell 1.2% to $3,392.86/ounce, after hitting its highest level since April 22 earlier in the session. Previously, on June 13, the gold price increased by more than 1%. The US gold futures price closed the session down 1% to $3,417.30/ounce.

Gold prices have been rising in recent sessions, largely in response to the conflict between Israel and Iran, so today’s decline is likely due to profit-taking after the previous rally, said David Meger, director of metals trading at High Ridge Futures.

Amid geopolitical tensions, Iran has called on US President Donald Trump to force Israel to cease fire as the only way to end the four-day air war. Meanwhile, Israeli Prime Minister Benjamin Netanyahu declared his country was on the "path to victory".

Investors are also focusing on the Fed's two-day policy meeting, which ends on June 18. The Fed is expected to keep interest rates unchanged.

The Fed appears to be on hold at this point, given the significant uncertainties in the economy , from tariffs to geopolitical tensions, so it wouldn’t be surprising if the Fed delayed any rate cuts, essentially postponing the decision, Meger said.

Gold is considered a safe haven asset during times of geopolitical uncertainty and rising inflation. The metal also benefits from a low interest rate environment.

In other precious metals, spot silver was steady at $36.33 an ounce. Platinum rose 2 percent to $1,252.57 an ounce, while palladium rose 0.8 percent to $1,036.10 an ounce.

In Vietnam, on the afternoon of June 16, Saigon Jewelry Company listed the price of SJC gold in the Hanoi market at 117.60 - 119.60 million VND/tael (buy - sell).