Gold futures drop by over 1%

Gold bars

Gold prices declined on Tuesday after US President Donald Trump announced a complete and total ceasefire between Iran and Israel, ending a 12-day war.

August gold futures fell 1.2%, or $41.1, to $3,353.9 per ounce.

Meanwhile, spot gold eased 0.9%, or $29.81, to $3,338.67 per ounce, as of 08:28 am KSA time.

The US Dollar Index declined by 0.3% to 98.12.

Silver futures for September delivery fell 0.25% to $36.43 per ounce. Spot platinum inched down 0.35% to $1,293.01, with palladium losing 1.1% to $1,066.7.

The drop followed Trump’s announcement that Iran and Israel agreed on a complete ceasefire agreement. Trump stated that Iran would begin implementation immediately, with Israel to follow 12 hours later. If both sides comply, the war will officially end 24 hours after the agreement takes effect.

Investors now await US Federal Reserve Chair Jerome Powell’s testimony before the House Financial Services Committee later today, ahead of the release of US consumer confidence data from the Conference Board.