Gold and Oil Drop Amid Middle East Ceasefire Prospects

Gold prices fell sharply as signs of easing geopolitical tensions in the Middle East reduced demand for safe-haven assets. New reports suggest that Israel and Lebanon's Hezbollah may soon agree to a ceasefire, according to the Israeli ambassador to the US. Although no official announcement has been made, the news caused gold to decline by as much as 3.7% to $2,615.58 (USD) per ounce, marking its steepest intraday drop since June 7.

Bart Melek, global head of commodity strategy at TD Securities, attributed the fall to reduced risk sentiment, leading traders to unwind positions built during last week’s geopolitical uncertainty. Oil prices also slumped, with West Texas Intermediate shedding 3.2% to below $69 (USD) per barrel and Brent crude dropping 2.9% to settle near $73 (USD).

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