Gold Prices Fall Over 1% as Israel-Iran Ceasefire Boosts Market Confidence

Gold prices experienced a notable drop during Tuesday’s Asian trading session, as news of a ceasefire between Israel and Iran eased geopolitical tensions and encouraged investors to move away from safe-haven assets toward riskier opportunities.

By 02:00 ET (06:00 GMT), spot gold had declined by 1.1% to $3,332.57 per ounce, reaching its lowest point since June 11. August gold futures also slipped, down 1.4% to $3,346.02 per ounce.

Risk Appetite Returns After Trump Confirms Ceasefire

The retreat from safe assets followed former U.S. President Donald Trump’s late Monday announcement that a complete ceasefire had been reached between Israel and Iran, potentially ending what he described as “THE 12 DAY WAR.” On his social platform Truth Social, Trump stated, “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”

Despite this, some reports indicated explosions near Tel Aviv and Beersheba shortly before the announcement. Iran has accepted the truce but made clear that its continuation depends on Israel halting military actions.

This ceasefire comes after a series of escalations, including U.S. strikes on Iranian nuclear sites and retaliatory missile launches by Tehran targeting a U.S. base in Qatar.

Markets responded positively: U.S. equity futures rose, oil prices dropped more than 3%, and the geopolitical risk premium lessened, reducing demand for traditional safe havens like gold.

Mixed Performance in Metals Amid Dollar Weakness

While gold and other precious metals declined, several industrial metals saw gains, supported by a softer U.S. dollar. The Dollar Index slipped 0.3% during Asian hours.

  • Silver futures fell 0.6% to $35.99 per ounce.
  • Platinum prices rose 0.9% to $1,280.15 per ounce.
  • Industrial metals showed mixed results: London copper futures increased 0.3% to $9,693.35 per ton, while U.S. copper futures decreased 0.7% to $4.90 per pound.

Investors are now focusing on Federal Reserve Chair Jerome Powell’s testimony to Congress, starting Tuesday, which is expected to provide insight into the central bank’s interest rate plans amid political and economic challenges.


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