Gold prices fell after reports of a ceasefire between Israel and Iran. About this informs Reuters.
Spot gold fell 0.9% to $3,338.39 an ounce, the lowest since June 11. Meanwhile, US gold futures lost 1.2% to $3,352.60.
“It looks like a significant amount of geopolitical risk is coming out of the market in the near term, after, of course, we have signs of de-escalation between the US and Iran.” – said Ilya Spivak, Head of the Global Macroeconomics Department at Tastylive.
Donald Trump’s announcement of a full ceasefire between Israel and Iran, likely to end the 12-day conflict that has forced millions to flee Tehran and sparked fears of further escalation, also weighed on the market.
The Deputy Chairman of the US Federal Reserve System, Michelle Bowman, noted that lowering interest rates may become relevant given the potential risks to the labor market. Investors await Fed Chairman Jerome Powell’s speech before the House Financial Services Committee. Powell is still cautious about possible easing of monetary policy.
“The bias for gold prices is higher, but we could see a correction in the near term and a rally in the dollar if Powell convinces the markets that they will not cut rates more than twice this year.”, – added Spivak.
Gold usually wins in low interest rates. Meanwhile, silver fell 0.1% to $36.08 an ounce, platinum lost 0.3% to $1,290.67, and palladium fell 1.3% to $1,062.94.
