Gold Falls After Trump's Shocking News
Gold prices fell after US President Donald Trump announced that Israel and Iran had agreed to a ceasefire. This statement has reduced demand for gold as a safe asset. Bullion fell as much as 1% below $3,335 an ounce on Tuesday, although the exact start date of the ceasefire and Israel's official reaction were still unclear.
Previously, gold prices rose sharply so far this year, recording a gain of about 28% due to geopolitical tensions and concerns about the global economy. In addition to conflicts in the Middle East, conflicts over Trump's tariff policies and central bank gold purchases have also driven up prices. However, easing tensions have caused investors to start dumping gold and switching to other riskier assets.
At noon Singapore time, spot gold prices fell 0.6% to $3,348.68 an ounce. The Bloomberg Dollar Index also weakened 0.3%, indicating a decline in the value of the US dollar. Meanwhile, platinum prices also fell, and silver moved flat with no significant changes.
Source: Newsmaker