Gold fell to the $3,325 mark on Tuesday, a two week low, as markets assessed the sustainability of the ceasefire between Iran and Israel. Tehran and Tel-Aviv had agreed to a momentary ceasefire after exchanging strikes since last week, but reports of fresh missile launches and strike orders raised skepticism on the validity of truce and supported concerns that the conflict will soon resume.
This was after the exchange of controlled strikes between Iran and the US minimized collateral damage and preluded a period of apparent de-escalation, reducing the appeal of gold’s safety and preventing the metal from retesting record highs of $3,500 from late April. In the meantime, key FOMC members noted that they are not opposed to a rate cut in the Fed’s upcoming July meeting amid signs of a wavering labor market and disinflation in consumer prices.
