Gold settles nearly 2% lower as geopolitical tensions ease

Gold bars

Gold prices fell at settlement on Tuesday as demand for safe-haven assets weakened following a de-escalation in geopolitical tensions in the Middle East and a ceasefire agreement between Iran and Israel.

August gold futures dropped 1.8%, or $61.1, to close at $3,333.9 an ounce.

The decline came as investor risk appetite improved after the ceasefire between Israel and Iran took effect earlier in the day.

Gold also came under pressure from remarks by Federal Reserve Chair Jerome Powell, who said policymakers need more time to assess the potential impact of new tariffs before proceeding with further interest rate cuts.