Gold dips to 2-week low as Trump announces Israel-Iran ceasefire

Gold prices dropped to their lowest level in nearly two weeks on Tuesday, following U.S. President Donald Trump’s announcement that Israel and Iran had agreed to a ceasefire—signaling a potential de-escalation in tensions and reducing demand for safe-haven assets.

As of 0526 GMT, spot gold was down 0.9% at $3,338.39 an ounce, having earlier touched its lowest since June 11. U.S. gold futures also declined, slipping 1.2% to $3,352.60.

“There’s a clear easing of geopolitical risk, at least in the short term, with signs of a potential resolution between Iran and the U.S.,” said Ilya Spivak, head of global macro at Tastylive.

Trump’s announcement marks a possible end to a 12-day conflict between Israel and Iran that displaced millions in Tehran and raised fears of wider regional instability.

While an Iranian official confirmed Tehran's agreement to the ceasefire, Iran’s foreign minister remained cautious, stating that hostilities would only stop if Israel ceased its attacks. Israel has yet to issue an official response.

The ceasefire news boosted global equities and pushed oil prices down to a one-week low, further easing market fears.

In other developments, U.S. Federal Reserve Vice Chair for Supervision Michelle Bowman noted on Monday that rate cuts could be on the horizon due to risks to the labor market. Investors are now awaiting Fed Chair Jerome Powell’s testimony before the House Financial Services Committee later on Tuesday. Powell has so far avoided committing to any immediate rate cuts.

Spivak noted that while gold still has upward potential, near-term corrections could occur, particularly if Powell signals fewer rate cuts than markets expect. Gold generally benefits from a low-interest-rate environment, as it reduces the opportunity cost of holding the non-yielding asset.

Other precious metals also saw mild declines: spot silver edged down 0.1% to $36.08 per ounce, platinum slipped 0.3% to $1,290.67, and palladium fell 1.3% to $1,062.94.