Gold reaches a near two-week low following Trump’s announcement of a ceasefire between Israel and Iran. Gold prices fell to a near two-week low in response to Donald Trump’s announcement of a ceasefire agreement between Iran and Israel, which diminished the demand for safe-haven assets. The agreement, brokered by Trump, emerges as the U.S. Federal Reserve deliberates potential interest rate reductions in light of apprehensions regarding the labor market and the influence of tariffs on inflationary pressures.
Gold reached a near two-week low on Tuesday following the announcement by U.S. President Donald Trump regarding a ceasefire agreement between Iran and Israel, which effectively diminished the demand for the metal as a safe haven. Spot gold declined by 0.6% to $3,349.89 per ounce, as of 0030 GMT, following a drop to its lowest level since June 11. U.S. gold futures experienced a decline of 0.9%, settling at $3,364.20. * In a post on his Truth Social platform, Trump suggested that a “complete and total” ceasefire between Israel and Iran would be implemented within 12 hours, after which the conflict would be deemed “ended.”
On Monday, Trump facilitated the agreement during a conversation with Israeli Prime Minister Benjamin Netanyahu, while his team interacted with Iranian officials, according to a senior White House official. An official, speaking on condition of anonymity, indicated that Israel has consented to the truce on the condition that Iran refrains from initiating further attacks. Iran indicated its intention to comply with the agreement, the official noted.
In a recent statement, U.S. Federal Reserve Vice Chair for Supervision Michelle Bowman indicated that the moment for interest rate reductions is nearing, given the potential threats to the labor market. Federal Reserve Bank of Chicago President Austan Goolsbee stated that, to date, the increase in tariffs has exerted a more limited influence on the economy than anticipated. Investors are anticipating testimony from Fed Chair Jerome Powell before the House Financial Services Committee later on Tuesday, although Powell has been prudent in indicating any near-term easing measures.
Futures markets persist in anticipating rate reductions commencing at the September policy meeting. Business activity in the United States experienced a slight deceleration in June, while prices continued to rise due to Trump’s assertive tariffs on imports, indicating a probable uptick in inflation in the latter half of the year. In other markets, spot silver experienced a modest increase of 0.1%, reaching $36.03 per ounce. In contrast, platinum saw a decline of 0.3%, settling at $1,260.78, while palladium recorded a slight decrease of 0.1%, priced at $1,043.