Gold Prices Stabilize as Safe-Haven Demand Eases.. Weak Dollar Limits Losses

Gold prices stabilized during trading on Wednesday, June 25, as demand for the precious metal as a safe haven waned following the easing of tensions between Iran and Israel. Meanwhile, the weakness of the dollar and increased purchases after the recent decline helped contain further losses.

According to data, the price of gold in the spot market held steady at $2328.50 per ounce, after touching its lowest levels in over two weeks in the previous session. On the other hand, gold futures in the United States rose by 0.2% to reach $2340.90.

This stability came after Iran and Israel announced a halt to their aerial warfare on Tuesday, following a rebuke from US President Donald Trump for both sides violating the previously declared ceasefire. The decline in the dollar index also led to its weekly lows, enhancing the attractiveness of gold to investors outside the United States.

In a related context, recent data revealed a sudden decline in US consumer confidence in June, amid increasing household concerns about the job market and challenges arising from Trump's trade policies.

During a congressional session on Tuesday, Federal Reserve Chairman Jerome Powell affirmed that high tariffs could contribute to raising inflation this summer, a critical period for the board to assess any potential interest rate cuts.

It is currently expected that the Fed will cut interest rates by about 61 basis points by 2025, with the first move expected to begin in September.