Gold Falls as Israel, Iran Move to Honor Ceasefire Agreement

Gold fell the most in more than five weeks as Israel and Iran appeared to be honoring a ceasefire agreement, dimming demand for the metal as a haven asset.

Bullion declined as much as 2.2% to below $3,296 an ounce on Tuesday, the biggest intraday loss since May 16. The truce between Israel and Iran was unexpectedly announced overnight by US President Donald Trump, but within hours, both sides breached the tentative agreement. Now the deal appears to be back on, with Israel agreeing to hold off on further strikes.

“The main driver right now is the tensions in ...