Gold hits near 2-week low as Trump announces Israel-Iran ceasefire – Commodities News

Gold hit a near two-week low on Tuesday after US President Donald Trump announced that Iran and Israel had agreed to a ceasefire to end their 12-day conflict, reducing safe-haven demand for the metal. 

Spot gold slipped 0.6% to $3,349.89 an ounce, as of 0030 GMT, after hitting its lowest level since June 11. US gold futures fell 0.9% to $3,364.20.  Writing on his Truth Social site, Trump implied a “complete and total” ceasefire between Israel and Iran would go into effect in 12 hours, and then the war would be considered “ended.” 

Trump brokered the deal on Monday during a call with Israeli Prime Minister Benjamin Netanyahu, while his team engaged with Iranian officials, a senior White House official said. Speaking on condition of anonymity, the official said Israel agreed to the truce provided Iran does not launch further attacks. Iran signalled it would abide by the agreement, the official added. 

Meanwhile, US Federal Reserve Vice Chair for Supervision Michelle Bowman said on Monday that the time to cut interest rates is approaching amid potential risks to the job market. Federal Reserve Bank of Chicago President Austan Goolsbee said, thus far, the surge in tariffs has had a more modest impact on the economy relative to what was expected. 

Investors are looking ahead to testimony by Fed Chair Jerome Powell before the House Financial Services Committee later on Tuesday, though Powell has been cautious about signalling near-term easing. 

Futures markets continue to price in rate cuts beginning at the September policy meeting. US business activity slowed marginally in June, though prices increased further amid Trump’s aggressive tariffs on imported goods, suggesting that an acceleration in inflation was likely in the second half of the year. 

Elsewhere, spot silver was up 0.1% at $36.03 per ounce, platinum fell 0.3% to $1,260.78, while palladium edged down 0.1% to $1,043.