According to SMI Financial News, gold futures prices closed flat in New York on Tuesday, after news of a possible ceasefire between Israel and Lebanon, leading to the largest drop in near-month gold futures in four years. Due to President-elect Trump's threat to impose a 25% import tariff on Canada and Mexico, the dollar strengthened, stabilizing gold after an earlier decline on that day.

Analysts suggest that since Trump's election, precious metals have been under pressure due to a strong dollar and rising US bond yields. However, the continuous increase in global public debt should support prices. As Israel and Hezbollah appear to be on the verge of a ceasefire agreement, easing tensions in the Middle East, this may reduce some of the risk premiums of precious metals. However, concerns remain high about the broader impact of the conflict between Russia and Ukraine.

The near-month gold futures contract for delivery in November on the New York Commodities Exchange rose by 0.1% to $2620.30 per ounce, marking the sixth increase in seven trading days. Additionally, the near-month silver futures contract for delivery in November rose by 0.6% to $30.388 per ounce.

Analyst Ruben Ferreira from FlowCommunity wrote that Trump's proposed tariffs could exacerbate market uncertainty, leading to increased demand for gold and other precious metals to hedge against market risks and economic instability.Its price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve.Investors are also watching the minutes of the Federal Reserve's November meeting, with differing views on the possibility of a rate cut in December. Ferreira stated that a rate cut would further boost the attractiveness of zero-interest gold.