Gold prices slipped over 1% in Asian trade on Tuesday, as easing geopolitical tensions following U.S. President Donald Trump’s announcement of an Israel-Iran ceasefire prompted investors to shift away from safe-haven assets.
Spot Gold declined 1.1% to $3,332.57 an ounce by 02:00 ET (06:00 GMT), reaching its lowest level since June 11.
Gold Futures for August dropped 1.4% to $3,346.02/oz.
Trump’s Israel-Iran ceasefire announcement sparks risk-on mood President Trump declared a full ceasefire between Israel and Iran on late Monday, signaling a possible end to “THE 12 DAY WAR.”
Trump, writing on Truth Social on early Tuesday, announced that “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”
However, media reports showed that explosions were heard near Tel Aviv and Beersheba in southern Israel before Trump’s statement.
Reports also stated that Iran confirmed the truce; however, its foreign minister warned the truce would only hold if Israel halted military actions.
The announcement comes days after the U.S. bombing of three Iranian nuclear sites. Tehran had retaliated on Monday by launching missile attacks at the U.S. airbase in Qatar.
Markets interpreted the ceasefire news positively as U.S. stock index futures rose, while oil prices slid over 3%, easing supply disruption concerns.
Investors moved away from safe-haven assets like gold, eyeing opportunities in equities and other risk-on assets.
Despite some support from a weaker dollar, investors were cautious ahead of the Federal Reserve Chair Jerome Powell’s two-day testimony before Congress starting on Tuesday.
Precious metals dip; copper gains on weak dollar Broader metal prices declined as investors shifted toward riskier assets on growing hopes of geopolitical stability. Industrial metals were higher as a weaker greenback provided support.
The US Dollar Index fell 0.3% in Asia hours.
Silver Futures fell 0.6% to $35.990 per ounce, while Platinum Futures rose 0.9% to $1,280.15/oz.
Meanwhile, benchmark Copper Futures on the London Metal Exchange rose 0.3% to $9,693.35 a ton, while U.S. Copper Futures dropped 0.7% to $4.900 a pound.
