Gold prices fell to their lowest levels in nearly two weeks during trading on Tuesday, following President Donald Trump’s announcement of a ceasefire agreement between Iran and Israel. This development eased geopolitical tensions and prompted investors to reduce their demand for the yellow metal as a safe haven.
Spot gold recorded a decline of 0.6%, reaching $3,349.89 per ounce, marking its lowest level since June 11. Meanwhile, U.S. gold futures dropped by 0.9% to settle at $3,364.20 per ounce.
This decline comes amid a relatively improved risk appetite among investors, buoyed by Trump’s assurances of a diplomatic breakthrough in the Middle East, which has diminished the demand for gold as a hedging tool.
Conversely, other precious metals exhibited mixed performance; silver increased by 0.1% in spot transactions to $36.03 per ounce, while platinum slipped by 0.3% to $1,260.78, and palladium decreased by 0.1% to $1,043.
It is noteworthy that gold is one of the key assets sought by investors during periods of political and economic turmoil; however, the easing of tensions between major regional powers such as Iran and Israel could lead to a shift in market trends.
