Trump Ceasefire Kills Gold’s Shine
Gold prices fell in early Asian trading after President Donald Trump announced that Israel and Iran had agreed to a full ceasefire. In a post on the Truth Social platform at 6 p.m. Eastern time, Trump said that a full ceasefire would take effect in the next six hours, after both countries complete their final missions.
The statement eased market concerns about the escalation of conflicts in the Middle East, which had previously boosted demand for gold as a safe asset. With the easing of tensions, investors began to move out of hedge assets and into riskier instruments.
As a result, the spot gold price fell 0.6% to $3,347.37 an ounce. Analysts expect gold demand to remain depressed if geopolitical tensions do indeed ease as Trump has said.
Source: Newsmaker