On Tuesday, gold and silver prices experienced a significant increase after U.S. President Donald Trump declared that the American-Israeli war on Iran has effectively come to an end. This announcement triggered a shift in investor sentiment, leading many to turn towards safer assets amidst prevailing uncertainties in the geopolitical landscape. As a result, the price of gold rose by 0.97% to reach $5,186.97 per ounce, while silver saw a more substantial rise of 2.7%, reaching $89.36 per ounce.

The rise in precious metal prices was further supported by a decline in the U.S. dollar and a drop in oil prices, which fell from record highs of $119 per barrel to approximately $90 by the start of trading on Tuesday. This combination of factors created a favorable environment for gold and silver, seen as safe haven assets when other markets face volatility. Trump's remarks about the diminished military capabilities of Iran, including its naval and aerial forces, resonated with investors who are increasingly wary of hosting geopolitical tensions.

In a CBS News interview, Trump emphasized the military deterioration of Iran, indicating that its military assets are widely dispersed and that numerous drone capabilities have been destroyed. The implications of these statements are significant, as they suggest a potential stabilization in the region, thereby impacting commodity markets, investor strategies, and the perception of risk associated with assets affected by ongoing conflicts. The market's reaction to such geopolitical statements highlights the sensitivity of commodity prices to political developments.