Financial encyclopedia

When news of a "ceasefire" emerged from the Middle East, people originally thought that the war would cool down → risks would decline → gold prices would fall.
But the result was the opposite - instead of falling, gold prices actually rebounded.
Why is this so? 

The first layer: The negative news has been fully priced in, and funds start to flow back
In fact, before the ceasefire news, the market had already digested the risks brought by the war. When the worst-case scenario did not deteriorate further but instead showed signs of cooling down, a situation would occur in the market: all the negative news had been fully priced in.
In other words, what was supposed to fall might have already fallen. When uncertainty decreases, some funds start to re-enter the market, pushing prices up. 

Second layer: Falling oil prices change interest rate expectations
As soon as the ceasefire news came out, oil prices immediately dropped. A fall in oil prices indicates that inflationary pressure may ease. When the market expects inflation to fall, it will further deduce: 

The Federal Reserve may not need to maintain high interest rates for a long time. Expectations of interest rate cuts may come earlier. Gold is highly sensitive to interest rates. When expectations of interest rates decline, the opportunity cost of holding gold decreases, which is naturally beneficial to the gold price. 

The third layer: Weakening of the US dollar (dollar-denominated effect)
Another key factor is the movement of the US dollar. When the market expects interest rates to possibly decline, the US dollar tends to weaken.
And gold is an asset denominated in US dollars: 

The weakening of the US dollar → a relative rise in gold prices
Even without obvious safe-haven demand, the change in exchange rates alone is sufficient to drive up gold prices. 

The fourth layer: The market does not focus on "events", but on "expectations".
The market does not directly react to events but prices in expectations of the future.
On the surface, it's a "ceasefire", but what the market is truly trading on is:
→ Will interest rates fall in the future?
→ Will the US dollar weaken?
→ Will inflation ease?
When these expectations change, the flow of funds will naturally change as well. 

The market never reacts to events themselves, but rather to the expectations behind them.