Gold Falls as Trump Announces Israel-Iran Ceasefire

Gold prices dropped sharply in overnight trading on June 24 after US President Donald Trump unexpectedly announced a full ceasefire agreement between Israel and Iran. The metal fell by up to 1.6%, losing over US$50 to trade at US$3,316/oz. Despite this pullback, gold is still up more than 25% year-to-date, buoyed by ongoing geopolitical uncertainty and central bank purchases that have strengthened its appeal as a safe haven.

Ceasefire

On June 24, US President Donald Trump announced a “total ceasefire” between Israel and Iran following 12 days of intense conflict, which included US airstrikes on Iranian nuclear sites. While Israel confirmed the ceasefire, Iran denied any formal agreement but expressed openness to de-escalation if Israeli attacks ceased. Despite the announcement, hostilities resumed as Israel accused Iran of launching missiles, prompting further Israeli strikes.

The conflict escalated earlier in June when Israel targeted Iran’s Natanz nuclear facility, claiming it posed an imminent threat. The United States later joined the conflict, bombing multiple nuclear sites, prompting Iran to retaliate by firing missiles at the US Al Udeid base in Qatar. Tensions have resulted in over 400 Iranian casualties and rising concerns of a broader regional war, with global markets reacting and nonproliferation efforts under strain.