Gold miners hit as price falls following news of Israel-Iran ceasefire
Published: 03:38 24 Jun 2025 EDT
The price of gold dropped 1.2% to a two-week low below $3,320 after Israel and Iran agreed to a ceasefire, following 12 days of fighting.
Gold has fallen around 2% over the past week, after gaining from safe haven demand in the past week amid an escalation of hostilities and missile strikes, culminating with US intervention in the form of 'bunker buster' bombs dropped on Iran's nuclear facilities over the weekend.
US President Donald Trump revealed in a post at just after 11 pm London time that "it has been fully agreed by and between Israel and Iran that there will be a complete and total ceasefire" and that once final military activities had been completed in the subsequent few hours "the war will be considered ended".
Israel's PM Benjamin Netanyahu confirmed the truce, with Iran’s foreign minister saying that "we have no intention to continue our response" provided that Israel stops its aggression and that a final decision on cessation of military operations "will be made later".
The news also sent oil prices tumbling and a retreat for the US dollar.
Richard Hunter, head of markets at Interactive Investor, says: "The pronouncement of a ceasefire between Israel and Iran and the lack of meaningful response from the latter to the US strikes over the weekend have lifted investor spirits and removed a plank of uncertainty.
"The news gives fresh impetus to a risk-on approach, which has lifted shares across most developed markets, while also weighing on the gold price as investors switched their attention elsewhere."
