Gold Prices Drop Over 1% as Israel-Iran Ceasefire Dims Safe-Haven Demand
Gold prices fell more than 1% in Asian trading on Tuesday, as geopolitical tensions eased following U.S. President Donald Trump’s announcement of a ceasefire between Israel and Iran. The development prompted investors to pull back from traditional safe-haven assets.
Spot gold dropped 1.1% to $3,332.57 an ounce by 02:00 ET (06:00 GMT), marking its lowest point since June 11. Gold futures for August delivery also slipped 1.4% to $3,346.02 per ounce.
Ceasefire Triggers Risk-On Sentiment
Trump declared a full ceasefire between Israel and Iran late Monday, potentially ending what he called “THE 12 DAY WAR.” In a Truth Social post early Tuesday, he confirmed: “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”
Despite the announcement, media outlets reported continued hostilities, including explosions near Tel Aviv and Beersheba. While Iran acknowledged the ceasefire, its foreign minister cautioned that its continuation depended on Israel halting military actions.
The ceasefire followed the U.S. bombing of three Iranian nuclear sites and a retaliatory missile strike by Iran on a U.S. base in Qatar. Markets responded positively: U.S. stock futures climbed, while oil prices fell over 3%, easing fears of supply disruptions.
This improved risk appetite saw investors move funds from gold into equities and other higher-risk assets.
Broader Metal Market Mixed Amid Dollar Weakness
Precious metals overall saw subdued demand, though some industrial metals gained on the back of a weaker dollar. The U.S. Dollar Index fell 0.3% during Asian trading hours.
- Silver futures slipped 0.6% to $35.990/oz
- Platinum futures edged up 0.9% to $1,280.15/oz
- LME copper rose 0.3% to $9,693.35/ton, while
- U.S. copper futures fell 0.7% to $4.900/lb
Investor focus is also shifting toward Federal Reserve Chair Jerome Powell’s two-day testimony before Congress, which begins Tuesday and could influence rate expectations moving forward.
