Gold prices took a noticeable dive on June 25, slipping more than 1% globally after signs of calm emerged from the Middle East. The 12-day military flare-up between Iran and Israel appears to have paused—for now—and with that, global investors seem to be pulling away from safe-haven assets like gold.
As of 0639 GMT, spot gold was down 1.4% to $3,319.84 an ounce, touching its lowest since June 11. US gold futures were also down 1.7% at $3,335.50.
According to Ilya Spivak from Tastylive, quoted in a Reuters report says, geopolitical tension appears to be “exiting the market”, at least in the short term. On June 25, US President Donald Trump confirmed a ceasefire agreement between Israel and Iran, requesting both sides not to violate it. Israeli Prime Minister Benjamin Netanyahu reportedly accepted the proposal.
This ceasefire announcement pushed global stock markets higher, while oil prices dropped to a two-week low, reflecting fading supply concerns.
The market is now turning its attention to US Federal Reserve Chair Jerome Powell’s scheduled testimony before the House Financial Services Committee. Traders are hoping to get a clearer picture of the Fed’s interest rate path. So far, Powell has been cautious about committing to near-term rate cuts.
Trump, however, added his own pitch—saying rates should be lowered by “at least two to three percentage points”. But the Fed has not backed that suggestion.
Closer to home, Kerala mirrored the global sentiment. Gold prices in the state were revised this afternoon, with the rate dropping by ₹60 per gram to ₹9,095 and by ₹480 per sovereign (8 grams) to ₹72,760. Earlier in the day, the price stood at ₹9,155 per gram and ₹73,240 per sovereign.
Even that was already a drop from the previous day, when prices had dipped ₹75 per gram and ₹600 per sovereign in the morning. The state-level revision at 1:30 PM followed the nearly 1.5% drop in global bullion rates. Currently, international gold is trading around $3,326 an ounce.
To give some perspective, Kerala’s gold price has come down nearly ₹1,800 per sovereign from the record high of ₹74,560 reached on June 14.
It wasn’t just gold under pressure. Silver dropped 0.5% to $35.96 per ounce, platinum lost 1.1% to settle at $1,280.58, and palladium slipped 2.2% to $1,055.15.
With geopolitical heat easing for now and the Fed yet to play its next move, traders are bracing for more short-term swings—but the long-term shine of gold hasn’t faded just yet.
