By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. June 24, 2025. Article no 1583.

Gold prices fell sharply by around 1.35% to 2% on June 24, 2025, reaching a near two-week low following the announcement of a ceasefire deal between Israel and Iran. This ceasefire announcement, made by U.S. President Donald Trump, significantly reduced geopolitical risk and safe-haven demand for gold, prompting investors to shift towards riskier assets like equities.

Spot gold dropped to about $3,320–$3,330 an ounce, with U.S. gold futures also declining by roughly 1.7% to $3,336 per ounce.

The easing of tensions boosted global stock markets and caused oil prices to fall, further diminishing gold’s appeal as a refuge amid uncertainty. Analysts noted that while gold is likely to consolidate near $3,300 in the short term, longer-term support remains strong, with expectations for a potential rally later in the year if economic uncertainties persist.

However, immediate market reaction clearly reflected improved risk appetite and reduced safe-haven demand due to the ceasefire.

Read also : Gold : Build Your Wealth and Freedom

Gold has a long history of maintaining its intrinsic worth regardless of economic turmoil or currency devaluation. Unlike paper money, which can lose value due to inflation or political instability, gold’s physical and enduring nature makes it a reliable store of wealth when other assets falter.

Gold is a long-term store of value and this storage capacity is standardized internationally. Each troy ounce of gold has the same value. The yellow metal is an asset with intrinsic value in itself, capable of maintaining its purchasing power throughout the centuries and around the world.

Read also : Five Good Reasons to Own Gold Now

Investors’ trust in gold as a safe haven is partly self-reinforcing. Because gold has historically been a refuge during past crises (e.g., the 2008 financial crisis), many investors flock to it instinctively when new conflicts arise, including wars in the Middle East.

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© Copyright 2025 – Eurasia Business News. Article no. 1583.