Gold Price crashes: Gold rate drops to 2-week low after Iran Israel war ceasefire. Analysts predict bullion rates

Gold price fell over 1 per cent on Tuesday to touch a two-week low. Spot gold was down 1.4 per cent at $3,322.09 an ounce, after hitting its lowest level since June 11 earlier in the session. US gold futures slipped 1.7 per cent to $3,336.00. Experts have predicted that gold rate for the near future. This came after US President Donald Trump's announcement of a ceasefire between Iran and Israel diminished bullion's safe-haven appeal.

Gold prices are trending lower today, driven by a shift towards greater risk appetite, as optimism grows over a potential end to hostilities in the Middle East, said Ricardo Evangelista, senior analyst at the brokerage firm ActivTrades.

Gold Price Prediction

Gold rates are unlikely to fall below the $3,000 mark in the short term, Evangelista stated. Gold price is likely to consolidate before staging another rally toward $3,600/oz by year-end, ANZ said in a note.

"Longer term, we expect gold to peak later in 2025, followed by a gradual decline in 2026 as economic growth prospects improve and global trade uncertainty diminishes," ANZ stated.

US Fed Interest Cut?

Meanwhile, markets are awaiting Federal Reserve Chair Jerome Powell's testimony before the House Financial Services Committee later today. So far, Powell has remained cautious about signaling any near-term rate cuts. Investors are currently anticipating 57 basis points worth of Fed rate cuts by the end of this year.

Non-yielding bullion's appeal tends to shine in a lower interest rate environment.

Stock Markets, Oil Prices, Silver Prices Today

Global stock markets surged and oil prices tumbled on Tuesday after the ceasefire announcement, in the hope it heralded a resolution of the war.

Elsewhere, spot silver eased 0.1 per cent to $36.10 per ounce, platinum rose 1 per cent to $1,307.93, while palladium slipped 0.4 per cent to $1,072.24.

FAQs

Q1. What are current Silver prices?
A1. Spot silver eased 0.1 per cent to $36.10 per ounce, Platinum rose 1 per cent to $1,307.93, while Palladium slipped 0.4 per cent to $1,072.24.

Q2. What are experts' predictions for Gold Prices?
A2. Gold rates are unlikely to fall below the $3,000 mark in the short term, Evangelista stated. Gold price is likely to consolidate before staging another rally toward $3,600/oz by year-end, ANZ said in a note.