War Ends, Gold Retreats: Prices Drop Over 1% on Mideast Peace

The formal end of the 12-day war between Israel and Iran sent gold prices retreating on Tuesday, with a more than 1% drop recorded. The implementation of a ceasefire immediately diminished gold’s appeal as a safe haven, as global geopolitical tensions eased.
Spot gold fell 1.4% to $3,319.84 an ounce, hitting a near two-week low. U.S. gold futures also experienced a significant decline, slipping 1.7% to $3,335.50. This downward movement underscores gold’s inverse relationship with global stability.
Analysts attributed the fall to a reduction in geopolitical risk following the de-escalation. The ceasefire, publicly acknowledged by both President Trump and Prime Minister Netanyahu, injected a sense of calm into international relations, fostering a more positive market environment.
The broader market responded favorably, with global equities rising and oil prices declining to a two-week low. Investors are now keenly anticipating Fed Chair Jerome Powell’s testimony, which could offer vital clues about the future direction of interest rates, a key factor for gold’s performance.