Gold dropped more than 1% to touch a two-week low on Tuesday, after President Donald Trump's announcement of a ceasefire between Israel and Iran diminished bullion's safe-haven appeal.
Spot gold was down 1.2% to $3,326.87 an ounce, as of 0852 GMT, after hitting its lowest level since June 11 earlier in the session.
U.S. gold futures slipped 1.6% to $3,339.40.
"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.
"I don't believe that gold prices will fall below the $3,000 mark in the short term. I see a meaningful support level at $3,300."
Global stock markets surged and oil prices tumbled on Tuesday after the ceasefire announcement, in the hope it heralded a resolution of the war.
However, Israeli Defence Minister Israel Katz said on Tuesday he had ordered the military to strike Tehran in response to an alleged violation of the ceasefire.
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.
"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."
Elsewhere, spot silver eased 0.1% to $36.08 per ounce, platinum rose 1.4% to $1,312.58, while palladium slipped 0.6% to $1,070.49.
Source: Reuters
Gold (XAU/USD) trims a part of its intraday gains, though it sticks to positive bias through the first half of the European session on Friday and remains close to the record high touched earlier this ...
Gold prices rose on Friday and were set for a fourth consecutive weekly gain, as mounting concerns over a weakening U.S. labour market eclipsed inflation worries ahead of a widely expected Federal Res...
The Gold price (XAU/USD) edges lower to around $3,630 during the early Asian session on Friday. The precious metal retreats from a record high on some profit-taking. Nonetheless, the rising bets of th...
Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates. Nevertheless, jobs ...
Gold trimmed losses after US inflation and labor market data strengthened bets that the Federal Reserve will cut interest rates next week. Consumer prices excluding food and energy rose 3.1% last mont...
The Federal Reserve is expected to deliver its first interest-rate cut this year at its September 16-17 meeting, as it moves to counter a cooling labor market even as inflation remains above target. The anticipated quarter-point reduction may not...
The U.S. dollar rose on Friday, a day after falling on a surge in U.S. jobless claims and modest inflation, as investors expected the Federal Reserve to cut interest rates next week after a roughly nine-month hiatus. The greenback rose 0.3% to...
European stocks closed flat on Friday, after data showed the U.K. economic growth stalled in July. The pan-European Stoxx 600 was flat at 0.09% with no broad consensus movement among sectors and major bourses.Data released on Friday morning showed...
The International Monetary Fund on Thursday said the Federal Reserve has scope to lower interest rates because of the weakening U.S. labor market,...
The Federal Reserve is likely to start a series of interest-rate cuts next week and keep going through the end of the year, traders bet on Wednesday...
Producer inflation in the United States, as measured by the change in the Producer Price Index (PPI), fell to 2.6% annually in August from 3.3% in...
Annual inflation in the United States (US), as measured by changes in the Consumer Price Index (CPI), rose to 2.9% in August from 2.7% in July, the...