Gold prices dropped sharply during Asian trading hours as investors moved away from safe-haven assets in response to President Trump’s announcement of a ceasefire between Israel and Iran. This news signals a potential de-escalation of the ongoing conflict in the Middle East, which had previously unsettled the markets.

Current Price Snapshot:

• Spot Gold: Fell by 1.1% to $3,332.57 per ounce, marking its lowest point since June 11.
• Gold Futures (August): Decreased by 1.4% to $3,346.02 per ounce.

Triggers Behind the Decline:

While President Trump declared the ceasefire via social media, stating:

“THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”

Despite reports of explosions near Tel Aviv, Iranian officials have reportedly backed the ceasefire, depending on Israel’s cessation of military actions.

Market Reactions:

• U.S. stock index futures rose as views of reduced geopolitical tensions took hold.
• Oil prices fell over 3%, relieving concerns about supply disruptions.
• Investors rotated funds out of gold and into higher-risk assets, seeking opportunities amid stability.