WASHINGTON (dpa-AFX) - Gold hit a two-week low on Tuesday, with demand for the safe-haven metal falling in the backdrop of the Israel-Iran ceasefire. The precious metal has almost given up all gains from the June rally.
Front Month Comex Gold for June delivery slumped $60.30 (or 1.79%) to $3,317.40 per troy ounce today.
Front Month Comex Silver for June delivery lost 45.20 cents (or 1.25%) to $35.701 per troy ounce today.
The Middle East crisis that erupted on June 12th with no ending in sight halted yesterday with US President Donald Trump announcing a ceasefire agreement reached between Israel and Iran. This breather, though uncertain, triggered investors to move away from the yellow metal.
Last weekend, the US intervened in the conflict directly by attacking three nuclear sites in Iran. Though Iran vowed a 'strong response' against the US and Israel, its retaliation was restricted only with aerial attacks on US military bases in Qatar.
On the economic front, US Commerce Department data revealed that the US Current Account deficit widened by $138.2 billion (44.3%) to $450.2 billion in Q1 2025, worse than the market expectation. Economists have warned that this could pose a risk to US Dollar in the long-term.
Interestingly, according to a survey by the Official Monetary and Financial Institutions Forum (OMFIF), the central banks across the globe are slowly moving away from purchasing the US dollar to gold, the euro, and the Chinese yuan.
Investors are focused on the economic data on inflation and employment coming up in the next few days as the US Fed officials have announced their willingness to go in for rate cuts if the data is favorable.
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