### Ceasefire Announcement Triggers Market Reactions: Gold and Oil Prices Plummet The recent announcement by U.S. President Donald Trump regarding a ceasefire between Israel and Iran has significantly impacted global markets, particularly in the commodities sector. Following the declaration, gold prices fell to a near two-week low, while oil prices experienced a sharp decline, reflecting a shift in investor sentiment towards riskier assets. This development comes after a period of heightened geopolitical tensions in the Middle East, which had previously driven investors towards safe-haven assets like gold. ### Breakdown of Market Reactions to the Ceasefire 1. **Gold Market Response** - Gold prices dropped over 1% to reach a two-week low, diminishing its appeal as a safe-haven asset due to improved risk appetite among investors following the ceasefire announcement [https://www.reuters.com/world/india/gold-near-2-week-low-after-trump-announces-israel-iran-ceasefire-2025-06-24]. - Spot gold was reported at approximately $3,348.68 per ounce, reflecting a significant decrease in demand for the metal [https://www.moneyweb.co.za/mineweb/gold-falls-as-haven-demand-ebbs-after-trump-announces-ceasefire]. 2. **Oil Market Response** - Oil prices fell sharply, with Brent crude dropping nearly 5% to below $70 per barrel, as the ceasefire alleviated concerns over supply disruptions in the Strait of Hormuz [https://www.zeebiz.com/markets/commodities/news-oil-prices-plunge-5-returning-to-levels-last-seen-before-iran-israel-conflict-370990]. - The decline in oil prices was attributed to reduced fears regarding Iran's crude supplies and the stability of oil transport routes [https://www.cnbc.com/2025/06/24/oil-sheds-xxxx-as-iran-israel-ceasefire-eases-concerns-strait-of-hormuz-closure.html]. 3. **Investor Sentiment and Future Outlook** - The announcement of the ceasefire has led to a "risk-on" sentiment in the markets, with investors moving away from safe-haven assets like gold towards equities and other riskier investments [https://www.fxstreet.com/news/gold-falls-as-israel-iran-ceasefire-lifts-risk-appetite-and-fed-powell-testifies-202506241329]. - Analysts are closely monitoring the situation, as the ceasefire remains fragile, and any resurgence in tensions could quickly reverse current market trends [https://oilprice.com/Energy/Oil-Prices/Oil-Prices-Tumble-as-Trump-Announces-Iran-Israel-Ceasefire.html]. ### Summary of Findings - **Gold Prices**: Following the ceasefire announcement, gold prices fell to a near two-week low, indicating a shift in investor behavior towards riskier assets. The price of gold was reported at approximately $3,348.68 per ounce, reflecting a decline in safe-haven demand [https://www.financialexpress.com/market/gold-pulse/gold-price-slumps-nearly-2-trades-around-3300-as-israel-iran-tensions-ease/3891486]. - **Oil Prices**: Oil prices experienced a significant drop, with Brent crude falling below $70 per barrel, as the ceasefire eased concerns over supply disruptions in the region [https://www.straitstimes.com/business/companies-markets/oil-prices-plunge-as-trump-announces-ceasefire-in-the-mideast]. - **Market Sentiment**: The overall market sentiment has shifted towards a more optimistic outlook, with investors showing increased risk appetite in light of the ceasefire, although the situation remains delicate and subject to rapid changes [https://www.fxleaders.com/news/2025/06/24/gold-price-eyes-3333-breakdown-as-israel-iran-ceasefire-sparks-risk-on-sentiment]. In conclusion, the announcement of a ceasefire between Israel and Iran has led to notable declines in both gold and oil prices, reflecting a significant shift in market dynamics and investor sentiment. The situation remains fluid, and ongoing developments will be crucial in determining future market trends.