A newfound calm in the Middle East, thanks to the ceasefire between Israel and Iran, undermined gold prices on Tuesday, causing them to fall by over 1%. The end of the 12-day conflict diminished gold’s appeal as a safe-haven asset, as investor risk appetite improved.
Spot gold saw a 1.4% decline, trading at $3,319.84 an ounce, its lowest level since June 11. Similarly, U.S. gold futures also experienced a downturn, slipping 1.7% to $3,335.50. This illustrates gold’s sensitivity to shifts in global political stability.
Analysts noted that the “good bit of geopolitical risk” had exited the market. The ceasefire, affirmed by both U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, provided a clear signal of de-escalation.
The positive news had a wider impact, boosting global equities and pushing oil prices to a two-week low as concerns over supply disruptions eased. Investors are now keenly awaiting Fed Chair Jerome Powell’s testimony, which will offer crucial insights into future interest rate policy, a vital determinant for gold’s performance.
Mideast Calm Undermines Gold: Prices Fall Over 1%
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