Spot gold falls 3% below $4,700 as ceasefire deadline uncertainty dents safe-haven rally

Spot gold prices fell 3% on Tuesday to slip below $4,700 per ounce, dropping to $4,677 as of 2000GMT, as investors reassessed geopolitical risk premiums ahead of a looming deadline for the US-Iran ceasefire.

The decline came as markets weighed the growing risk that diplomacy may fail to secure an extension of the two-week truce, which is due to end Wednesday evening Washington time. US President Donald Trump said Iran had violated the ceasefire “numerous times” and indicated he did not want to extend it, increasing uncertainty over whether talks can prevent renewed hostilities.

Fresh doubts over the diplomatic track emerged after a planned US delegation departure for Pakistan for a second round of face-to-face talks with Iran was delayed Tuesday because of additional policy meetings in Washington, according to US media reports. The uncertainty around the talks has kept investors focused on the risk of another escalation in the Gulf.

Iran’s UN ambassador, Amir Saeid Iravani, said talks in Islamabad could resume “as soon as” Washington lifts its naval blockade, underscoring that a key obstacle remains unresolved even as the ceasefire clock runs down. Pakistan, for its part, said Tehran had not yet formally confirmed whether it would attend the talks.

The US and Iran held a first round of high-level face-to-face talks in Pakistan earlier this month, but the negotiations ended without a deal, leaving investors to navigate conflicting signals over whether diplomacy can hold.

Energy and financial markets remain highly sensitive to developments around the ceasefire and the Strait of Hormuz, a critical route for global crude and fuel shipments, with each sign of diplomatic strain continuing to drive volatility across commodities.