Gold Slips to Two-Week Low as Markets React to Trump-Brokered Ceasefire Between Iran and Israel

Global markets saw a shift away from safe-haven assets on Tuesday after U.S. President Donald Trump announced a ceasefire agreement between Israel and Iran, sending gold prices to their lowest level in nearly two weeks.

Spot gold dropped 0.5% to $3,351.47 an ounce as of 0257 GMT, hitting levels not seen since June 11 earlier in the session. U.S. gold futures also declined by 0.9%, settling at $3,365.30.

The fall in gold came as investor sentiment improved on signs of de-escalation in the Middle East, reducing demand for traditional safe-haven assets. “It seems like there’s a good bit of geopolitical risk that’s exiting the market here near term,” said Ilya Spivak, head of global macro at Tastylive. “Signs of de-escalation between the U.S. and Iran have clearly calmed nerves.”

Trump’s declaration of a “complete ceasefire” between Iran and Israel potentially brings an end to a 12-day conflict that displaced millions in Tehran and raised fears of a broader regional war. While Tehran confirmed its agreement to halt hostilities if Israel stops its strikes, Israel has yet to issue an official statement.

Despite the fragile nature of the truce, global markets responded positively. Equities rallied worldwide, and oil prices slipped to a one-week low on easing concerns over regional supply disruptions. Analysts say the news marks a sharp shift from last week’s heightened risk environment.

Adding to the pressure on gold was renewed focus on U.S. monetary policy. Federal Reserve Vice Chair for Supervision Michelle Bowman said Monday that the time to cut interest rates may be approaching, citing risks to the labor market. Investors are now watching closely for testimony from Fed Chair Jerome Powell before the House Financial Services Committee later on Tuesday, which could provide further guidance on rate expectations.

While gold typically performs well in a low-interest-rate environment, any signals from Powell suggesting fewer cuts than expected could temporarily strengthen the dollar and weigh on bullion.

“The bias for gold prices is higher in the long term,” added Spivak, “but we might see a correction in the near-term and an uptick in the dollar if Powell convinces markets that they’re not going to cut more than twice this year.”

The yellow metal remains sensitive to both geopolitical developments and central bank policy, making this week’s events crucial in shaping investor direction for the weeks ahead.