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Gold prices slipped to a two-week low as ceasefire hopes between Iran and Israel reduced safe-haven demand. Domestic rates also eased, though long-term investor interest remains strong.
By Anshul June 24, 2025, 9:41:51 AM IST (Published)
Gold prices fell to their lowest in nearly two weeks on Tuesday (June 24), after investor appetite for risk improved following US President Donald Trump’s announcement of a ceasefire between Iran and Israel.
Spot gold dropped 0.5% to $3,351.47 an ounce, while US gold futures declined 0.9% to $3,365.30 an ounce.
The metal had earlier hit its lowest level since June 11.
In India, 24-karat gold was priced at ₹1,00,680 per 10 grams. Rates for 22-karat and 18-karat gold stood at ₹92,290 and ₹75,510 per 10 grams respectively, according to data from Goodreturns.
"Markets are pricing in signs of de-escalation between the US and Iran," said Ilya Spivak, Head of Global Macro at Tastylive.
He noted that easing geopolitical tensions are pulling investors away from traditional safe-haven assets like gold.
Global equities rallied, while oil prices slipped to a one-week low. This followed Trump's announcement that both Israel and Iran had agreed to a complete ceasefire after nearly two weeks of hostilities. However, there was no confirmation from Israel, and Iran signaled that its cooperation depends on Israel halting attacks.
Meanwhile, attention has shifted to the US Federal Reserve Vice Chair Michelle Bowman said rate cuts may be on the horizon due to potential job market risks. Investors now await comments from Fed Chair Jerome Powell, which could sway the outlook for interest rates.
Lower rates tend to support gold by reducing the opportunity cost of holding the non-yielding asset.
“Despite short-term volatility, gold has surged nearly 30% so far this year,” said Riya Singh, Research Analyst at Emkay Global Financial Services. She added that domestic prices rose 4% in June, even as jewellery demand softened.
Gold ETFs continue to attract strong investor interest. In May, Indian gold ETFs saw net inflows of ₹290 crore, with assets under management jumping 97% year-on-year to ₹62,400 crore. At the same time, imports fell 13% annually in May to $2.5 billion, reflecting cautious demand at elevated price levels.
Analysts say gold prices could remain firm in the medium term, supported by lingering inflation risks, uncertain oil markets, and cautious central bank moves.
