Global Gold Prices Hold Steady Amid Cooling Demand Following Iran-Israel Ceasefire

Gold prices stabilized on Wednesday as demand for safe-haven assets eased after the announcement of a ceasefire between Iran and Israel. Despite subdued investor appetite, a weaker U.S. dollar and bargain hunting following the previous session’s decline helped limit further losses in the precious metal.As of 00:42 GMT, spot gold held firm at $3,326.39 per ounce, after hitting its lowest level in over two weeks during Tuesday’s session. Meanwhile, U.S. gold futures edged up by 0.2% to $3,340 per ounce.The geopolitical truce between Iran and Israel has tempered market tensions, reducing the urgency to seek refuge in gold. However, the U.S. dollar index hovered near a one-week low, making dollar-priced gold more attractive to investors holding other currencies.On the economic front, U.S. consumer confidence unexpectedly declined in June, driven by rising concerns over job availability and ongoing economic uncertainty linked to the administration’s tariff policies. This deterioration in sentiment added another layer of caution in financial markets.Market expectations now indicate a potential interest rate cut by the Federal Reserve totaling 61 basis points in 2025, with the first adjustment likely to occur in September. Additionally, the prospect of higher tariffs contributing to inflation this summer may further influence the Fed’s monetary policy stance.Among other precious metals, spot silver rose 0.1% to $35.94 per ounce. Platinum fell 0.2% to $1,313.88, while palladium also slipped 0.2% to $1,064.01 per ounce.