Calm Returns: Gold Weakens on End of Israel-Iran Hostilities

A palpable sense of calm returned to global markets on Tuesday, leading to a weakening of gold prices by over 1%. This shift was directly attributed to the ceasefire between Israel and Iran, which brought an end to their recent hostilities and alleviated significant geopolitical concerns.
Spot gold fell 1.4% to $3,319.84 an ounce, marking its lowest level in almost two weeks. U.S. gold futures also experienced a notable decline, slipping 1.7% to $3,335.50. This downturn highlights gold’s sensitivity to periods of reduced global uncertainty.
Analysts like Ilya Spivak noted that a “good bit of geopolitical risk” had exited the market. The ceasefire, affirmed by both President Trump and Prime Minister Netanyahu, played a crucial role in improving overall market sentiment.
The positive news extended to other markets, with global equities gaining ground and oil prices retreating to a two-week low as concerns over supply disruptions eased. Investors are now keenly awaiting Fed Chair Jerome Powell’s testimony, which will be crucial for understanding the Federal Reserve’s stance on interest rates, a vital element for gold’s performance.