Gold prices experienced a significant retreat on Tuesday, driven by the de-escalation of tensions in the Middle East. With the ceasefire between Israel and Iran now in effect, the 12-day conflict concluded, reducing the demand for gold as a safe-haven asset and leading to a more than 1% price fall.
Spot gold fell 1.4% to $3,319.84 an ounce, reaching its lowest point in nearly two weeks. U.S. gold futures also saw a notable decline, slipping 1.7% to $3,335.50. This downturn illustrates gold’s vulnerability to improved global stability.
According to experts, the reduction in perceived geopolitical risk was a major factor. The ceasefire, confirmed by both President Trump and Prime Minister Netanyahu, fostered a more positive market environment.
The positive news extended beyond gold, with global equities rallying and oil prices falling to a two-week low as supply disruption fears subsided. All eyes are now on Fed Chair Jerome Powell’s upcoming testimony, which will be scrutinized for insights into future interest rate policy, a critical factor for gold.
