The military actions taken by the United States against Iran last weekend unexpectedly led to a brief spike in the prices of Gold (XAUUSD) and Oil (CLS10) during Monday’s trading session.
Gold prices peaked at $3,394 per troy ounce but subsequently fell, closing Monday’s trading at $3,368 per troy ounce. Conversely, Oil (CLS10) opened at $77.70 per barrel only to plummet to $67.20 per barrel shortly after.
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In trading on Tuesday morning (June 24, 2026), Gold saw a decline exceeding $35 to $3,333.16 per troy ounce. Oil fared worse, dropping $2.83 to $64.37 per barrel.
This significant movement occurred following Iran’s retaliatory strikes on U.S. military bases in Qatar and Iraq, targeting them in response to the U.S. bombing of three of their nuclear facilities over the weekend.
However, many analysts view these attacks as merely a “symbolic response,” indicating that a larger conflict is unlikely. This perception caused an immediate reversal in market trends, leading to declines in Gold and Oil prices.
The downward pressure on both commodities intensified after U.S. President Donald Trump announced a ceasefire timeline between Israel and Iran. Trump shared on Truth Social that he believes, assuming everything proceeds as planned, both nations deserve commendation for their resilience, courage, and intelligence in what should be recognized as the “12-DAY WAR” coming to an end.
Israel initially launched an assault on Iran on June 13; if the conflict is indeed classified as a 12-day war, a ceasefire could likely be established in the next couple of days. This outlook improved market sentiment, which reduced Gold’s appeal as a safe haven, putting downward pressure on its price.
Similarly, Oil prices faced pressure due to a decreasing risk of supply disruptions from the Middle East. Notably, Iran has refrained from blocking the Strait of Hormuz, the key pipeline for oil distribution.
The previously strong U.S. dollar also reversed course, weakening in light of the potential ceasefire. The EURUSD and GBPUSD pair appreciated this morning while the USDJPY declined. The improved market sentiment contributed to a significant rise in stock indices, with the Nasdaq hitting 22,254 this morning, approaching its all-time high of 22,318 reached on February 18.
