Spot Gold Declines Over 2% Intraday.

Spot Gold Declines Over 2% Intraday.

Spot gold prices experienced a significant decline of over 2% intraday on Tuesday, June 19, 2025, as geopolitical tensions eased following a ceasefire announcement between Israel and Iran. The price of gold fell 1.1% to $3,332.57 an ounce by 02:00 ET (06:00 GMT), marking its lowest level since June 11 [1].

The decline in gold prices was attributed to the positive risk-on sentiment sparked by the ceasefire announcement. President Donald Trump declared a full ceasefire between Israel and Iran, signaling a possible end to the ongoing conflict. This announcement led investors to shift away from safe-haven assets like gold and into riskier assets such as equities and other commodities [1].

The ceasefire announcement came after a series of escalating tensions, including the U.S. bombing of three Iranian nuclear sites and Iran's retaliatory missile attacks on the U.S. airbase in Qatar. Despite the ceasefire, media reports indicated that explosions were heard near Tel Aviv and Beersheba in southern Israel before Trump’s statement, and Iran’s foreign minister warned that the truce would only hold if Israel halted military actions [1].

The risk-on mood was further reflected in the rise of U.S. stock index futures and a slide in oil prices, which eased concerns about supply disruptions. The U.S. Dollar Index also fell by 0.3% in Asian hours, providing support for industrial metals and other commodities [1].

Analysts have noted that while the ceasefire announcement provided a temporary relief, investors remain cautious ahead of the Federal Reserve Chair Jerome Powell’s two-day testimony before Congress starting on Tuesday. The Federal Reserve's current stance on interest rates and the potential for geopolitical escalation continue to influence the gold market [2].

Gold prices have been supported by ongoing geopolitical uncertainties, particularly in the Middle East, and expectations around the Federal Reserve's policies. However, recent predictions suggest that gold prices may see a correction in the coming months. Experts predict that gold might see a correction of 8-10% in the next one-two months and around 30% in the next one year, as the bullion market has already factored in geopolitical tensions and other influencing factors [3].

In conclusion, the intraday decline in spot gold prices reflects the temporary easing of geopolitical tensions and the shift in investor sentiment towards riskier assets. However, the market remains cautious ahead of upcoming economic data and the Federal Reserve's policy decisions.

References:
[1] https://www.investing.com/news/commodities-news/gold-prices-slip-over-1-as-israeliran-ceasefire-sparks-riskon-rally-4107002
[2] https://www.ainvest.com/news/gold-daily-geopolitical-tensions-support-gold-dollar-strength-testing-key-technical-levels-2506/
[3] https://www.news18.com/business/savings-and-investments/gold-rate-prediction-2025-yellow-metal-may-see-10-correction-in-2-months-and-30-fall-in-a-year-say-experts-9393332.html