Geopolitical risk subsided dramatically on Tuesday, causing gold prices to retreat by over 1%. The ceasefire between Israel and Iran, bringing an end to their 12-day conflict, significantly reduced global tensions and diminished gold’s appeal as a safe-haven asset.
Spot gold dropped 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 highlights gold’s sensitivity to periods of reduced international uncertainty.
Analysts 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.
Geopolitical Risk Subsides: Gold Prices Retreat 1%
