Gold prices saw a decline, reaching a near two-week low on Tuesday as risk appetite improved following U.S. President Donald Trump’s announcement that Iran and Israel had agreed to a ceasefire, which diminished demand for safe-haven assets.
In Dubai, gold rates witnessed a drop, with 24-carat gold decreasing by AED0.75 to AED404.00, and 22-carat gold also falling AED0.75 to AED374.25. Moreover, 21-carat gold decreased to AED358.75, while 18-carat gold dropped to AED307.50.
Spot gold was down 0.5 percent, trading at $3,351.47 an ounce as of 02:57 GMT (currently above $3,350), after reaching its lowest level since June 11 earlier in the session. U.S. gold futures slipped by 0.9 percent to $3,365.30 (currently trading above $3,364).
“It seems like there’s a good bit of geopolitical risk that’s exiting the market here near term after, of course, we have signs of de-escalation between the U.S. and Iran,” reported Reuters, citing Ilya Spivak, head of global macro at Tastylive. Trump declared a complete ceasefire between Israel and Iran, potentially bringing an end to the 12-day conflict.
Global shares rallied, while oil prices fell to a one-week low following Trump’s announcement regarding the Iran-Israel ceasefire. Meanwhile, U.S. Federal Reserve Vice Chair for Supervision Michelle Bowman stated on Monday that the time for cutting interest rates is approaching due to potential risks to the job market.
Awaiting Powell’s testimony
Investors are awaiting testimony from Fed Chair Jerome Powell before the House Financial Services Committee later on Tuesday. Powell has been cautious about signaling any near-term easing. “The bias for gold prices is higher, 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,” Spivak noted. Gold typically thrives in a low-interest-rate environment.
Elsewhere, spot silver eased 0.1 percent to $36.10 per ounce, platinum fell 0.2 percent to $1,292.39, and palladium slipped 0.4 percent to $1,073.05.
Gold prices saw a slight decline on Monday as investors shifted to the dollar in response to U.S. airstrikes on significant Iranian nuclear sites over the weekend, prompting markets to closely monitor Iran’s possible reaction.
In Dubai, gold rates again witnessed a decline, with 24-carat gold dropping to AED405.76 and 22-carat gold falling to AED375.68. Additionally, 21-carat gold decreased to AED358.59, while 18-carat gold fell to AED307.36.
Spot gold was down 0.2 percent at $3,362.29 an ounce as of 03:41 GMT (currently trading above $3,360). U.S. gold futures declined by 0.2 percent to $3,378 (currently trading above $3,374).
