Bullion bears emerged on Tuesday, pushing gold prices down by over 1%, as Middle East tensions receded. The ceasefire between Israel and Iran, bringing an end to their 12-day conflict, significantly reduced the need for safe-haven assets, allowing selling pressure to build.
Spot gold fell 1.4% to $3,319.84 an ounce, its lowest level in almost two weeks. U.S. gold futures also experienced a notable decline, slipping 1.7% to $3,335.50. This market reaction underscores gold’s sensitivity to shifts in geopolitical landscapes.
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.
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