Gold Loses Shine as Ceasefire Cools Tensions — But Don’t Count It Out Yet
Gold prices are trading close to a two-week low, around $2,333 per ounce. This drop happened after news of a possible ceasefire between Israel and Iran. When tensions between countries ease, investors usually move away from safe assets like gold, which is why the price fell.
However, the fall in gold didn’t continue for long. Iran said it would only stop its attacks if Israel stopped its own strikes first. At the same time, reports came in that missiles were still being launched toward Israel. Because of this, some fear and uncertainty remained in the market, stopping gold prices from falling further.
On the economic side, the U.S. dollar became weaker due to growing expectations that the Federal Reserve might cut interest rates in July. Some Fed officials gave hints that such a move could be coming soon. A weaker dollar usually helps gold, since gold becomes cheaper for buyers using other currencies.
Traders are now watching what the Fed Chair will say in his upcoming speech and also waiting for important U.S. data like PMI and consumer confidence figures. These will help decide what might happen with interest rates next.
Gold has dropped below its short-term support level. If it goes below $2,322, it could fall even more. But if it rises above $2,370, it might face selling again near $2,400.
Impact:
Gold might remain unstable. If the ceasefire continues and the dollar stays strong, prices could drop more. But weak U.S. data might help gold recover slightly.