Gold’s price correction continued on Tuesday, with a more than 1% fall, as geopolitical calm dominated market sentiment. The ceasefire between Israel and Iran, which brought an end to their 12-day conflict, significantly reduced global tensions and lessened the demand for gold 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 diminished appeal when global tensions subside.
Analysts noted that a “good bit of geopolitical risk” had exited the market. The ceasefire, affirmed by both President Trump and Prime Minister Netanyahu, provided a clear signal of de-escalation.
The positive news had a wider impact, boosting global equities and pushing oil prices to a two-week low as concerns over supply disruptions eased. Investors are now keenly awaiting Fed Chair Jerome Powell’s testimony, which will offer crucial insights into future interest rate policy, a vital determinant for gold’s performance.