FX.co ★ Gold Pulls Back to 2-Week Low

Gold experienced a decline to $3,325 on Tuesday, marking a two-week low, as investors evaluated the durability of the ceasefire between Iran and Israel. Tehran and Tel Aviv had entered a temporary ceasefire following a series of strikes that began last week. However, reports indicating new missile launches and ongoing strike orders have cast doubt on the truce's credibility, fueling concerns that hostilities may soon reignite. This development comes after controlled strikes between Iran and the US aimed to minimize collateral damage, leading to a temporary period of de-escalation, which diminished gold's appeal as a safe-haven asset and kept it from nearing its late-April high of $3,500 again. Meanwhile, important members of the Federal Open Market Committee (FOMC) have expressed openness to a rate cut at the Federal Reserve's upcoming July meeting, in response to signs of a weakening labor market and reduced inflation in consumer prices.