In response to prospects of a de-escalation in the Middle East tensions, XAU/USD fell and has continued to decline throughout the day.
Despite the apparent breakthrough, Israeli Defense Minister Israel Katz ordered retaliatory strikes after claiming Iran violated the agreement hours after both nations agreed to the ceasefire, allegations that Tehran denies.
US President Donald Trump announced the initial ceasefire between Israel and Iran on Monday evening during an address at Capitol Hill, stating that “Stability in the Middle East is essential for global peace.”
The announcement followed Iranian missile strikes on US bases in Qatar, which were intercepted without casualties.
The ceasefire has pressured Gold and Crude Oil prices as traders unwind risk hedges tied to potential disruptions in the Strait of Hormuz, a critical chokepoint for roughly 20% of global Oil supply.
The reduced threat of supply disruption would help lower inflation expectations, a key theme for the Fed, which is facing pressure from Trump to cut interest rates.
However, investors expect the Gold price to get supported by a dramatic change in the Federal Reserve’s (Fed) stance on the monetary policy outlook. Fed Vice Chair Michelle Bowman stated in a gathering in Prague on Monday that monetary policy adjustments are becoming appropriate amid growing job market risks and expectations that the tariff policy announced by Donald Trump will have limited impact on inflation.
Tomorrow,Federal Reserve Chairman Jerome Powell testifies about the semiannual Monetary Policy Report before the US Senate Committee on Banking, Housing, and Urban Affairs.
Despite the apparent breakthrough, Israeli Defense Minister Israel Katz ordered retaliatory strikes after claiming Iran violated the agreement hours after both nations agreed to the ceasefire, allegations that Tehran denies.
US President Donald Trump announced the initial ceasefire between Israel and Iran on Monday evening during an address at Capitol Hill, stating that “Stability in the Middle East is essential for global peace.”
The announcement followed Iranian missile strikes on US bases in Qatar, which were intercepted without casualties.
The ceasefire has pressured Gold and Crude Oil prices as traders unwind risk hedges tied to potential disruptions in the Strait of Hormuz, a critical chokepoint for roughly 20% of global Oil supply.
The reduced threat of supply disruption would help lower inflation expectations, a key theme for the Fed, which is facing pressure from Trump to cut interest rates.
However, investors expect the Gold price to get supported by a dramatic change in the Federal Reserve’s (Fed) stance on the monetary policy outlook. Fed Vice Chair Michelle Bowman stated in a gathering in Prague on Monday that monetary policy adjustments are becoming appropriate amid growing job market risks and expectations that the tariff policy announced by Donald Trump will have limited impact on inflation.
Tomorrow,Federal Reserve Chairman Jerome Powell testifies about the semiannual Monetary Policy Report before the US Senate Committee on Banking, Housing, and Urban Affairs.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.