Gold falls as Israel-Iran ceasefire lifts risk appetite and Fed Powell testifies
Gold prices are falling on Tuesday as investors flee from safe-haven assets after the announcement of a ceasefire between Israel and Iran.
Risk appetite was lifted after United States (US) President Donald Trump confirmed a ceasefire between Israel and Iran, posting on Truth Social: “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”
Despite the apparent breakthrough, Israeli Defense Minister Israel Katz ordered retaliatory strikes after claiming Iran violated the agreement hours after both nations agreed to the ceasefire, allegations that Tehran denies.
With the Middle East conflict entering a fragile pause, attention turns to Federal Reserve (Fed) Chair Jerome Powell’s semiannual testimony before Congress at 14:00 GMT. Traders are closely watching his stance on inflation and the path for rate cuts, with July or September emerging as key potential months for such a move.
Source: Fxstreet