The market’s direction shifted during trading on Tuesday following U.S. President Donald Trump’s announcement of a ceasefire between Israel and Iran. However, Trump recently expressed frustration towards both nations for disregarding the ceasefire proposal. Despite lower intensity, both countries continue to engage in hostilities.
This sentiment is expected to influence market movements on Wednesday (June 25, 2025).
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GOLD
Gold prices (XAUUSD) plummeted by over $46 or 460 pips, settling at $3,322.62 per troy ounce in Tuesday’s trading session. The price even dipped below $3,300 per troy ounce due to a decrease in demand for safe havens following Trump’s call for a ceasefire.
However, the sharp decline over the last two days could trigger a buy-on-dip strategy, especially since Israel and Iran continue their strikes. If both nations dismiss Trump’s call and persist with military actions, there is a possibility that Gold may rebound during European trading.
OIL
Oil prices (CLS10) saw a decrease of $2.21 on Tuesday, dropping to $64.99 per barrel. Earlier last week, Oil experienced significant volatility, reaching a five-month high of $77.70 per barrel before falling back to $66.61.
The dynamics of the Israel-Iran conflict involving the United States primarily drive Oil prices. Nevertheless, if both countries maintain their military attacks, there is a potential for Oil to rebound given the sharp decline in the last two days.
EURUSD
The EURUSD increased by over 300 points (30 pips) to 1.16061 on Tuesday, even peaking at 1.16417, marking the highest level since October 2021. The positive sentiment surrounding EURUSD stemmed from Trump’s ceasefire call, which diminished the demand for the U.S. dollar as a safe haven.
However, since both nations continue their confrontations, there could be a chance of profit-taking affecting the EURUSD if the situation continues.
GBPUSD
GBPUSD surged 905 points (90.5 pips) to 1.36094, hitting its highest level since January 2022.
In addition to the reduced allure of being a safe haven, the U.S. dollar is also facing pressure after the consumer sentiment index fell further from the 100 mark, indicating increasing pessimism among consumers about the economic outlook.
Similar to EURUSD, there is a potential for profit-taking to affect this currency pair if hostilities between Israel and Iran persist.
USDJPY
The U.S. dollar faced pressure due to Trump’s ceasefire call and a drop in the consumer confidence index, decreasing by 1.238 points (123.8 pips) to 144.832 during Tuesday’s trading.
The volatility of this currency pair has been notably high since last week, and the recent sharp decline could instigate buy-on-dip strategies, particularly if the Israel-Iran conflict escalates again.
Nasdaq
The Nasdaq index soared to reach an all-time high of 22,447 on Tuesday before closing at 22,407. Compared to the previous day’s trading close, the Nasdaq rose by 336 index points.
The positive sentiment for Nasdaq was driven by Trump’s ceasefire call. However, with Israel and Iran seemingly ignoring this call, there is a risk of profit-taking in Nasdaq if the intensity of their attacks increases.
