Gold prices reached near two-month highs in mid-June 2025 amid escalating tensions between Israel and Iran, which increased demand for safe-haven assets. The metal saw gains as the conflict fueled investor caution. However, following an announcement by U.S. President Donald Trump of a ceasefire agreement between Israel and Iran, gold prices declined sharply. By late June, gold had fallen over 1%, reaching a two-week low below $3,330 per ounce, as the ceasefire reduced geopolitical risks and safe-haven demand. The market remained cautious due to the ceasefire's fragility, with gold steadying as investors awaited clearer signs that the conflict would not reignite. Gold was on track for a second consecutive weekly loss by the end of June. In July, optimism surrounding U.S.-Japan and U.S.-European Union trade deals further eased market uncertainty and risk appetite improved, leading to additional declines in gold prices. Weakness in U.S. Treasuries accompanied these developments as investors trimmed exposure to traditional haven assets. Overall, the easing of Middle East tensions and progress in trade negotiations contributed to a reduction in gold's safe-haven appeal during this period.