Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinNew York spot gold fell 1.8% to close under $3,318 after President Trump announced a ceasefire between Iran and Israel, reducing demand for safe havens and stoking risk appetite. Silver shed 1.2% to finish at $35.70 an ounce.

After two weeks of intensive missile strikes, Iran and Israel have entered a ceasefire in which both sides have proclaimed victory. While each has accused the other of violations already, the truce appears to be holding.

Wall Street cheered the news, with all three major US stock indexes rising more than 1.2%.

Oil prices tumbled 5.6% on reduced fears of a disruption in supply. Iran threatened to close the Strait of Hormuz, conduit for 20% of the world's oil, if Israel persisted in its attacks. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

Against this backdrop, US consumer confidence waned unexpectedly in June on concerns that trade wars will impact the labor market and make jobs harder to find.

Fed Chair Jerome Powell, appearing before Congress, said expectations of higher prices and rising unemployment due to tariffs are likely to keep interest rates where they are for now.

President Trump today called for the Fed to lower rates by 200 to 300 basis points immediately. Fed fund futures markets project 50 basis points in cuts this year, starting in October.

Platinum advanced 2% while palladium retreated 1.2%.

At the New York spot close: gold fell $60.30 to $3,317.40; silver slid 45 cents to $35.70; platinum picked up $27.20 to $1,320.70; and palladium dropped $13.30 to $1,068.50 an ounce.