*

Israel says Iran violates ceasefire announced by Trump,

orders

new strikes

*

Focus on Powell's testimony due later in the day

*

ANZ expects gold to peak later in 2025, followed by a

gradual

decline in 2026

(Rewrites throughout, updates prices for European morning

session)

By Anushree Mukherjee

June 24 (Reuters) - Gold dropped more than 1% to touch a

two-week low on Tuesday, after President Donald Trump's

announcement of a ceasefire between Israel and Iran diminished

bullion's safe-haven appeal.

Spot gold was down 1.2% to $3,326.87 an ounce, as of

0852 GMT, after hitting its lowest level since June 11 earlier

in the session.

U.S. gold futures slipped 1.6% to $3,339.40.

"Gold prices are trending lower today, driven by a shift

towards greater risk appetite, as optimism grows over a

potential end to hostilities in the Middle East," said Ricardo

Evangelista, senior analyst at the brokerage firm ActivTrades.

"I don't believe that gold prices will fall below the $3,000

mark in the short term. I see a meaningful support level at

$3,300."

Global stock markets surged and oil prices tumbled on

Tuesday after the ceasefire announcement, in the hope it

heralded a resolution of the war.

However, Israeli Defence Minister Israel Katz said on

Tuesday he had ordered the military to strike Tehran in response

to an alleged violation of the ceasefire.

Meanwhile, markets are awaiting Federal Reserve Chair Jerome

Powell's testimony before the House Financial Services Committee

later today. So far, Powell has remained cautious about

signaling any near-term rate cuts.

Non-yielding bullion's appeal tends to shine in a lower

interest rate environment.

Investors are currently anticipating 57 basis points worth

of Fed rate cuts by the end of this year.

"Gold price is likely to consolidate before staging another

rally toward $3,600/oz by year-end," ANZ said in a note.

"Longer term, we expect gold to peak later in 2025, followed

by a gradual decline in 2026 as economic growth prospects

improve and global trade uncertainty diminishes."

Elsewhere, spot silver eased 0.1% to $36.08 per

ounce, platinum rose 1.4% to $1,312.58, while palladium

slipped 0.6% to $1,070.49.