Gold Drops Over 1% as Ceasefire Between Israel and Iran Lifts Market Sentiment

Gold prices declined sharply during Asian trading hours on Tuesday, as a ceasefire agreement between Israel and Iran cooled geopolitical fears and prompted a shift toward riskier investments.

By 02:00 ET (06:00 GMT), spot gold had fallen 1.1% to $3,332.57 per ounce, touching its lowest level since June 11. Gold futures for August delivery also slid, down 1.4% to $3,346.02 per ounce.

Risk Appetite Strengthens Following Trump’s Ceasefire Declaration

The move out of safe-haven assets came after former U.S. President Donald Trump announced late Monday that a full ceasefire had been agreed upon between Israel and Iran, potentially concluding what he referred to as “THE 12 DAY WAR.” In a post on Truth Social, Trump confirmed, “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”

Despite the declaration, some local reports noted explosions near Tel Aviv and Beersheba shortly beforehand. Iran has acknowledged the truce but emphasized that its continuation depends on Israel ceasing military operations.

The ceasefire follows a series of military escalations, including U.S. strikes on Iranian nuclear facilities and retaliatory missile attacks by Tehran targeting an American airbase in Qatar.

Markets responded optimistically. U.S. equity futures climbed, oil prices tumbled more than 3%, and geopolitical risk premiums faded—pressuring demand for traditional safe-haven assets like gold.

Metal Markets Mixed Amid Dollar Weakness

While gold and other precious metals dipped, some industrial metals gained ground, supported by a weaker U.S. dollar, with the Dollar Index down 0.3% during Asian hours.

• Silver futures eased 0.6% to $35.99 per ounce,
• Platinum edged up 0.9% to $1,280.15 per ounce.
• On the industrial side, London copper futures rose 0.3% to $9,693.35 per ton, while U.S. copper futures slipped 0.7% to $4.90 per pound.

Market participants are now turning their attention to Federal Reserve Chair Jerome Powell’s congressional testimony, which begins Tuesday. His remarks are expected to shed light on the Fed’s interest rate outlook amid ongoing political and economic pressures.