XAU/USD: Gold Prices Dive Below $3,330 After Trump Floats End of Israel-Iran War in 24 Hours

Israel and Iran are yet to chime in with a confirmation but that didn’t stop Trump from thanking Tehran for the “very weak” counterstrike.

📢 Gold Prices Retreat on Peace Prospects

• Gold prices XAUUSD slipped under the session’s flatline and charted a Tuesday low of $3,329 per ounce after Trump announced late yesterday that Israel and Iran have reached a ceasefire that will officially be in effect in 24 hours (late Tuesday).
• "Officially, Iran will start the CEASEFIRE and, upon the 12th Hour, Israel will start the CEASEFIRE and, upon the 24th Hour, an Official END to THE 12 DAY WAR will be saluted by the World," he said in a social media post.
• It was good news for everyone who was holding stocks or dollar alternatives — equity markets rose ahead of the bell today with S&P 500 futures up more than 1%. The euro pumped against the dollar, breaking $1.16.

🍀 Gold’s Role in War

• And gold? Gold acted as a safe haven asset throughout the heated moments of war escalation. Prices of bullion shot up to $3,450 in the very early stages of this 12-day war (for now) before coming down to settle at current market prices.
• Now that there are prospects for peace, gold bugs are left holding the bag (kind of), because global markets breathe easy and can pivot back into risk assets.
• Still, there’s a very real threat of continued war tremors — Iranian missiles fired early Tuesday claimed four victims on Israeli territory. That is, right after Trump thanked Iran for the “very weak response” when it struck a US base in Qatar yesterday.

⚠️ Gold Volatility to Stick Around

• Gold prices are expected to stay volatile as both sides can choose to continue the attacks despite Trump’s peace efforts and ceasefire promises.
• On the technical front, gold is on the verge of breaking the 50-day moving average to the downside, indicating that the bears might be taking over in the short run. In the long run, the 100-day line and the 200-day line are sitting at $3,150 and $2,909, respectively.
• Meanwhile, the flurry of this week’s economic data is just about to sweep up global markets. Fed chief Jay Powell is scheduled to speak to the US Senate today and tomorrow, likely dropping hints about future interest rate cuts (high volatility — highly possible).