02:00 PM EDT, 06/24/2025 (MT Newswires) -- (Updates prices.)

Gold prices tumbled early on Tuesday with safe-haven demand easing as the United States and Iran backed away from hostilities while Tehran reached a shaky ceasefire agreement with Israel.

Gold for August delivery was last seen down US$60.00 to US$3,335.00 per ounce.

The drop comes as Middle East violence calms after a weekend U.S. attack on Iran's uranium-enrichment facilities was met on Monday with a face-saving Iranian attack on a U.S. base in Qatar that had hours of warning from Iran ahead of the strike. Iran and Israel shortly afterwards reached a ceasefire deal in the 12-day war launched by Israel, even as both sides violated the agreement with further attacks.

"Gold retreated as haven demand ebbed after Trump said Israel and Iran had agreed to a ceasefire, partly offset by support from renewed dollar weakness and easing energy-related inflation concerns," Saxo Bank noted.

The dollar was also sharply lower, usually bullish for commodities priced in the currency. The ICE dollar index was last seen down 0.61 points to 97.81. Treasury yields also weakened, with the yield on the two-year note last seen down 4.5 basis points to 3.825%, while the 10-year note was paying 4.299%, down 5.0 points.