Significant geopolitical de-escalation, driven by the ceasefire between Israel and Iran, sent gold prices tumbling on Tuesday to a nearly two-week low. The end of the 12-day conflict reduced the demand for safe-haven assets, leading to a more than 1% drop in gold’s value.
Spot gold fell 1.4% to $3,319.84 an ounce, reaching its lowest point since June 11. U.S. gold futures also saw a notable decline, slipping 1.7% to $3,335.50. This immediate market reaction underscores gold’s role as a barometer for global tensions.
According to experts, the reduction in perceived geopolitical risk was a major factor. The ceasefire, confirmed by President Trump and Prime Minister Netanyahu, provided a clear signal of reduced instability, fostering a more positive market environment.
The broader market responded positively, with global equities rising and oil prices declining as supply disruption fears abated. All eyes are now on Fed Chair Jerome Powell’s upcoming testimony, which could provide crucial insights into future interest rate policies, a key driver for gold.