Gold prices dropped to their lowest levels in nearly two weeks on Tuesday after U.S. President Donald Trump announced a comprehensive ceasefire agreement between Iran and Israel, easing geopolitical tensions and reducing investor demand for the safe-haven metal.
Spot Gold and Futures Decline Amid Risk-On Sentiment
- Spot gold fell by 1.08% to $3,332.05 per ounce
- U.S. gold futures dropped 0.9% to $3,363.50 per ounce
The decline comes as markets shift away from risk aversion following Trump’s announcement, which many see as a key turning point in the 12-day conflict between the two Middle Eastern rivals.
Trump Confirms Truce via Truth Social
In a post on his social media platform Truth Social, Trump stated that a “full and comprehensive” ceasefire would take effect within 12 hours, and the war would be officially declared over.
A senior White House official revealed that Trump brokered the agreement during a phone call with Israeli Prime Minister Benjamin Netanyahu, while his team was also in communication with Iranian officials.
The official, speaking on condition of anonymity, noted that Israel agreed to the truce on the condition that Iran refrains from launching further attacks, a condition Iran reportedly accepted.
Gold Prices Dropped, How About Other Precious Metals?
Other precious metals showed mixed results in response to shifting market sentiment:
- Silver rose 0.1% to $36.03 per ounce
- Platinum dropped 0.3% to $1,260.78 per ounce
- Palladium edged lower by 0.1% to $1,043.00 per ounce
Market Outlook: Will the Ceasefire Hold?
Analysts suggest that gold prices may remain under pressure if the ceasefire holds and geopolitical risk continues to fade.
However, any breach of the agreement or fresh escalation could reignite demand for safe-haven assets.
