Gold pulled back sharply in overnight trade on Tuesday following US President Donald Trump’s surprise announcement that Israel and Iran had agreed to a complete ceasefire.
Gold fell as much as 1.6% or more than $50 to $3,316 an ounce on Tuesday. Bullion remains up more than 25% since the start of the year with investors piling into the metal as a safe haven asset during geopolitical turmoil.
The economic fallout of trade tensions also persuaded investors to opt for bullion over riskier assets and continued central bank buying underpinned the metal’s advance this year.
Trump made the announcement, later confirmed by Israeli Prime Minister Benjamin Netanyahu, on his Truth Social platform, adding that the deal is aimed at a lasting end to the fighting and warning both side not to violate the accord.
