The ceasefire in the Middle East has led to a decrease in demand, causing gold prices to fall for the second consecutive week.

According to Gate News bot, Bloomberg reported that gold prices fell for the second consecutive week as the ceasefire between Israel and Iran weakened safe-haven demand. In early Asian trading, gold prices slightly decreased to around $3315 per ounce, accumulating a fall of about 1.5% this week. This week, gold prices largely maintained narrow fluctuations, except for Tuesday, when a big dump occurred due to the two hostile forces in the Middle East adhering to the ceasefire protocol after nearly two weeks of war.

The current ceasefire marks the return of market risk appetite, which continued until Friday, when U.S. Commerce Secretary Howard Lutnick stated in an interview with Bloomberg Television that the U.S. and China have finalized a trade framework, and the White House plans to reach agreements with ten major trading partners soon. However, the details of any potential agreement remain unclear.

This year, gold prices have risen by more than 25%, remaining less than $200 away from the historical high set in April. In addition to geopolitical and trade tensions, the strong bond purchases by central banks and the optimistic sentiment regarding the Federal Reserve's readiness to restart monetary easing have also supported gold prices, while low interest rates are usually beneficial for this non-yielding precious metal.