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Comex Gold August futures down 1.8%, to trade near $3,335 per ounce primarily attributed to a decline in safe-haven demand, following a surprise announcement by US President Donald Trump regarding a ceasefire agreement between Israel and Iran, later confirmed by Israeli Prime Minister Benjamin Netanyahu. The accord aims for a lasting de-escalation of tensions. Previously, gold had enjoyed a significant 27% year-to-date rally, fueled by escalating geopolitical concerns, the economic implications of Trump's tariffs, and continuous central bank acquisitions. Market participants are now keenly awaiting Federal Reserve Chairman Jerome Powell's upcoming congressional testimony, seeking indications on future monetary easing, a factor historically supportive of non-interest-bearing assets like gold.

WTI Crude Oil dropped around 2.5% to $66.70 today after US President Donald Trump announced a ceasefire between Iran and Israel. The initial decline was partially offset by claims of the agreement being violated, though Iran denied launching any attacks. Trump's announcement of a "total ceasefire" via Truth Social significantly reduced crude's risk premium. This brought prices back to pre-June 12 levels, when Israel attacked Iran. The market is now anticipating a looming surplus due to increased supply from both OPEC+ and non-OPEC+ producers, which expected to outpace demand growth later in the year. This price pullback highlights the often-short-lived nature of geopolitical impacts on crude prices.

LME base metals traded mixed, with aluminium pulling back from a 2-month high amid rising Chinese inventories, signaling weaker demand. Zinc extended its previous session gains, rising over 1% to around $2712/ton, driven by a softer dollar, which now hovers near the 98-mark coupled with a decline in SHFE inventories, amidst tightening supply conditions. Copper also gained as easing geopolitical tensions after a ceasefire agreement between Israel and Iran, boosted risk sentiment. Meanwhile, a sharp drawdown in LME inventories has triggered one of copper’s biggest backwardations since 2021, reflecting acute supply stress.

European natural gas futures demonstrated significant volatility, initially plummeting nearly 13%—the sharpest intraday loss in almost two years. This substantial decline was a direct market reaction to the preliminary reports of a ceasefire between Israel and Iran, easing immediate concerns over potential energy supply disruptions from the Middle East. However, the commodity subsequently recovered some ground, with losses moderating to approximately 10%. This rebound occurred as Israel accused Iran of breaching the truce, reigniting anxieties among traders. While Iran's state-run IRIB news agency denied firing missiles, the evolving geopolitical tensions underscore the inherent sensitivity of natural gas prices to regional stability.

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