Gold/USD drops 1.2% to $2,320 on Israel-Iran ceasefire news
Gold prices have retreated sharply, falling 1.2% to $2,320 per ounce as reports of an Israel-Iran ceasefire significantly reduced safe-haven demand. The precious metal had surged to $2,350 last week amid escalating Middle East tensions but is now facing selling pressure as risk appetite returns to markets. EUR/USD has benefited from the dollar's weakness, rising 0.3% to 1.0845, while GBP/USD advanced 0.25% to 1.2680. The reduced geopolitical risk premium has led to a broader rotation out of defensive assets, with US Treasury yields rising 5 basis points to 4.25%. Technical analysis shows gold breaking below the key support at $2,330, potentially opening the path to $2,300. Traders are now focusing on upcoming Federal Reserve communications for further direction. The ceasefire development may reduce inflationary pressures from elevated oil prices, potentially giving central banks more flexibility in their policy decisions.
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