Gold prices dropped sharply on Tuesday after a ceasefire between Israel and Iran lowered global tensions. Investors moved away from gold and toward riskier assets, reducing demand for the metal often seen as a safe haven during conflicts.
As of early Tuesday (0639 GMT), spot gold fell by 1.4% to $3,319.84 an ounce, the lowest level since June 11. Meanwhile, U.S. gold futures slipped even more—down 1.7% to $3,335.50 an ounce.
Analyst Ilya Spivak from Tastylive said that the ceasefire had removed some of the geopolitical risks, which had earlier supported high gold prices. “There’s less fear in the market now,” he explained.
U.S. President Donald Trump confirmed the ceasefire and asked both Iran and Israel to stick to the agreement. Israeli Prime Minister Benjamin Netanyahu also agreed to the proposal. Following this, global stock markets rose, and oil prices dropped as fears of supply problems eased.
Investors are now turning their attention to Federal Reserve Chair Jerome Powell, who is scheduled to speak before the U.S. House Financial Services Committee. Powell is not expected to support a major interest rate cut soon, but markets are watching closely.
Spivak added that while gold prices might rise in the long term, a short-term correction is likely, especially if the U.S. dollar strengthens based on Powell’s remarks. Gold usually does better when interest rates are low.
In other metals, silver fell 0.5% to $35.96 an ounce, platinum dropped 1.1% to $1,280.58, and palladium fell 2.2% to $1,055.15.
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