Gold experienced a clear price reversal on Tuesday, with its value turning downwards following the establishment of peace in the Middle East. The ceasefire between Israel and Iran, ending their 12-day conflict, significantly reduced geopolitical tensions and diminished the demand for gold as a safe-haven asset, leading to a more than 1% price drop.
Spot gold fell 1.4% to $3,319.84 an ounce, reaching its lowest point in nearly two weeks. U.S. gold futures also saw a notable decline, slipping 1.7% to $3,335.50. This downturn illustrates gold’s vulnerability to improved global conditions.
According to experts, the de-escalation of tensions removed a considerable amount of geopolitical risk. The ceasefire, confirmed by both President Trump and Prime Minister Netanyahu, fostered a more positive market environment.
The positive news extended beyond gold, with global equities rallying and oil prices falling to a two-week low as supply disruption fears subsided. All eyes are now on Fed Chair Jerome Powell’s upcoming testimony, which will be scrutinized for insights into future interest rate policy, a critical factor for gold.
