Gold prices fell to a nearly two-week low on Tuesday, as risk appetite rose after US President Donald Trump announced that Iran and Israel had agreed to a ceasefire, which reduced demand for safe-haven assets, UNN reports with reference to Reuters.
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Spot gold fell 0.9% to $3338.39 per ounce at 05:26 GMT (08:26 Kyiv time) after reaching its lowest level since June 11 earlier in the session.
US gold futures fell 1.2% to $3352.60.
"It looks like a significant amount of geopolitical risk is coming off the market in the near term, after, of course, we had signs of de-escalation between the US and Iran," said Ilya Spivak, head of global macroeconomics at Tastylive.
Trump announced a full ceasefire between Israel and Iran, potentially ending a 12-day conflict that displaced millions of people from Tehran and raised fears of further escalation in the region.
Israel did not immediately comment. Although an Iranian official had earlier confirmed that Tehran had agreed to a ceasefire, the country's foreign minister said there would be no cessation of hostilities unless Israel stopped its attacks.
Global stocks rose and oil prices fell to a weekly low after Trump announced a ceasefire between Iran and Israel.
Meanwhile, Federal Reserve Vice Chair for Supervision Michelle Bowman said on Monday that the time for interest rate cuts was approaching amid potential risks to the labor market.
Investors are awaiting testimony from Fed Chair Jerome Powell before the US House Financial Services Committee later on Tuesday. Powell has been cautious about signaling policy easing in the short term.
"The bias for gold prices is higher, but we could see a correction in the near term and a stronger dollar if Powell convinces markets that they won't cut rates more than twice this year," Spivak said.
Gold typically thrives in a low interest rate environment.
Spot silver fell 0.1% to $36.08 an ounce, platinum fell 0.3% to $1290.67, and palladium fell 1.3% to $1062.94.