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WTI Leads Market Correction as Ceasefire Lowers Geopolitical Premiums | 25th June, 2025

Oil Slips on Ceasefire

On June 25, 2025, financial markets continue to digest the Israel-Iran ceasefire, driving a broader pullback in safe-haven and energy assets. Crude oil (WTI) dips below $65.00 as geopolitical tensions ease, reducing supply risk premiums. Gold (XAU/USD) drifts below $3,350 despite stable inflation expectations, while Silver (XAG/USD) posts modest gains near $36.00 amid ongoing dollar weakness. The Australian Dollar (AUD/USD) climbs to 0.6850, supported by upbeat sentiment even after soft CPI data. Meanwhile, GBP/USD holds above 1.3600 as risk appetite lifts high-beta currencies. Attention now turns to US GDP revisions, crude oil inventory data, and further developments in Middle East diplomacy.

Gold Price Forecast (XAU/USD)

Current Price and Context

Gold (XAU/USD) trades below $3,350, slipping for a second straight session as the de-escalation in the Middle East reduces safe-haven demand. The metal’s pullback is further supported by firm risk sentiment and a modest recovery in Treasury yields. Despite this, gold remains underpinned by expectations of eventual Fed easing and ongoing uncertainty in global markets.

Key Drivers

  • Geopolitical Risks: Israel-Iran ceasefire lowers urgency for hedging via safe-haven assets, weighing on gold’s upside potential.

  • US Economic Data: Markets await US GDP and jobless claims for updated growth and inflation signals; strong numbers may pressure gold further.

  • FOMC Outcome: Fed maintains a cautious tone, pushing potential rate cuts into late 2025. Higher-for-longer rates limit gold’s near-term appeal.

  • Trade Policy: Calmer global trade rhetoric reduces flight-to-safety flows, limiting short-term demand for bullion.

  • Monetary Policy: Elevated yields and sticky inflation expectations continue to challenge gold bulls, even as long-term Fed pivot hopes persist.

Technical Outlook

  • Trend: Bearish near-term with fading momentum after rejecting $3,375.

  • Resistance: $3,355, followed by $3,375 and $3,400.

  • Support: $3,335, then $3,300 and $3,280.

  • Forecast: Gold may range between $3,300–$3,355. A break below $3,335 could trigger further losses, while any geopolitical flare-up may offer support.

Sentiment and Catalysts

  • Market Sentiment: Cautious to bearish as gold fails to attract flows in the absence of conflict or dovish Fed signals.

  • Catalysts: US GDP, Fed commentary, bond market volatility, and Middle East updates.

Silver Price Forecast (XAG/USD)

Current Price and Context

Silver (XAG/USD) trades near $36.00, posting modest gains as the US Dollar weakens and risk appetite improves following the Israel-Iran ceasefire. Unlike gold, silver finds some support from both safe-haven relief and its industrial demand outlook, which is bolstered by broader optimism in the global economy. Despite the upward bias, momentum remains limited as markets await key US economic updates.

Key Drivers

  • Geopolitical Risks: De-escalation in the Middle East reduces safe-haven urgency, but silver holds up due to its industrial use case and dual-role nature.

  • US Economic Data: Softer USD after recent data supports silver; attention now shifts to GDP revisions and PCE inflation for further cues.

  • FOMC Outcome: Hawkish hold by the Fed keeps real yields elevated, capping aggressive silver upside despite medium-term dovish expectations.

  • Trade Policy: Less friction in global trade promotes industrial metal demand, indirectly supporting silver.

  • Monetary Policy: Rising US yields present a headwind, but any signal of a Fed pivot later in 2025 could favor silver bulls.

Technical Outlook

  • Trend: Neutral to slightly bullish after holding key support levels.

  • Resistance: $36.20, then $36.55 and $37.00.

  • Support: $35.70, followed by $35.30 and $34.90.

  • Forecast: Silver may consolidate between $35.70–$36.55. A breakout above $36.55 could open a path to $37.00+, while renewed USD strength may push it back toward $35.30.

Sentiment and Catalysts

  • Market Sentiment: Slightly bullish as weaker USD supports buying interest. X posts suggest traders are watching $36.20 for a potential breakout.

  • Catalysts: US PCE inflation, GDP data, Eurozone PMI, and shifts in risk sentiment across global equities.

Australian Dollar Forecast (AUD/USD)

Current Price and Context

AUD/USD trades near 0.6850, extending its gains as risk appetite improves in global markets following the Israel-Iran ceasefire. Despite Australia’s softer-than-expected monthly CPI reading, the Australian Dollar continues to benefit from investor preference for high-beta currencies. A weaker US Dollar and rising commodity optimism further support the pair.

Key Drivers

  • Geopolitical Risks: De-escalation in the Middle East reduces global uncertainty, fueling demand for risk-sensitive currencies like the Aussie.

  • US Economic Data: Upcoming US GDP and PCE inflation figures could influence USD direction; weak results may extend AUD gains.

  • FOMC Outcome: The Fed’s delay in rate cuts limits broad USD weakness but supports risk currencies like AUD as rate differentials narrow.

  • Trade Policy: Steady China-Australia trade relations and stable global trade dynamics benefit AUD as a commodity-linked currency.

  • Monetary Policy: RBA expected to remain on hold; lower-than-expected inflation reduces hawkish pressure, but global sentiment supports the Aussie in the near term.


Technical Outlook

  • Trend: Bullish short-term bias following a breakout above 0.6800.

  • Resistance: 0.6865, then 0.6900 and 0.6950.

  • Support: 0.6815, followed by 0.6780 and 0.6750.

  • Forecast: AUD/USD may push toward 0.6900 if USD weakness persists. Downside risks include a stronger-than-expected US GDP or hawkish Fed signals.

Sentiment and Catalysts

  • Market Sentiment: Bullish, supported by risk-on flows and commodity strength. Social media posts highlight the pair’s resilience despite soft CPI.

  • Catalysts: US GDP and PCE data, China’s PMI updates, and any unexpected comments from RBA or Fed officials.

Sterling Forecast (GBP/USD)

Current Price and Context

GBP/USD trades above 1.3600, maintaining bullish momentum as improved risk sentiment lifts high-beta currencies. The pair benefits from a weaker US Dollar and stable UK fundamentals, with investors showing renewed appetite for sterling amid easing geopolitical tensions. Risk-on flows support the pound, even in the absence of fresh UK economic drivers.

Key Drivers

  • Geopolitical Risks: The Israel-Iran ceasefire reduces global volatility, allowing GBP to climb as part of the broader shift away from safe-haven demand.

  • US Economic Data: Traders await Q1 GDP revisions and PCE data to gauge the USD’s next move. Soft results could lift GBP/USD further.

  • FOMC Outcome: The Fed’s wait-and-see approach caps USD strength, aiding GBP/USD’s rise in the absence of strong US data.

  • Trade Policy: With limited new trade tensions and improved global relations, GBP enjoys favorable positioning among risk-aligned currencies.

  • Monetary Policy: The Bank of England remains cautious but steady, keeping rates at 4.25%. Policy divergence with the Fed may narrow later in the year.

Technical Outlook

  • Trend: Bullish continuation; supported by higher lows and stronger closes above 1.3550.

  • Resistance: 1.3645, then 1.3730 and 1.3860.

  • Support: 1.3570, followed by 1.3520 and 1.3450.

  • Forecast: GBP/USD may climb toward 1.3645–1.3730 as long as risk sentiment remains favorable and USD weakness continues.

Sentiment and Catalysts

  • Market Sentiment: Bullish; X sentiment highlights GBP’s strength as a relative outperformer in the current risk-on environment.

  • Catalysts: US GDP and inflation data, global equity trends, BoE policy commentary, and risk tone shifts.

WTI Crude Oil Forecast

Current Price and Context

WTI crude oil trades just below $65.00, extending its decline as markets respond to the Israel-Iran ceasefire. The de-escalation in the Middle East has significantly reduced the geopolitical risk premium embedded in oil prices, prompting traders to unwind bullish positions. The broader risk-on mood further pressures crude, despite ongoing concerns about demand stability and US inventory trends.

Key Drivers

  • Geopolitical Risks: The Israel-Iran ceasefire alleviates fears of a broader conflict in the Middle East, removing a key support for oil prices.

  • US Economic Data: Upcoming Q1 GDP revisions and crude inventory data may influence near-term demand expectations. Weak data could increase downside pressure.

  • FOMC Outcome: The Fed remains cautious, but a delayed easing cycle still weighs on growth-sensitive commodities like oil.

  • Trade Policy: Reduced tensions globally and within trade corridors limit tail-risk hedging, trimming speculative flows into energy markets.

  • Monetary Policy: With rate cuts still projected later in 2025, slower global growth could cap oil demand expectations.

Technical Outlook

  • Trend: Bearish continuation after breaking below $66.20 support.

  • Resistance: $65.60, followed by $66.90 and $68.50.

  • Support: $64.20, then $63.50 and $62.00.

  • Forecast: WTI may test $64.00 if downside momentum continues. A rebound to $66.00 is possible only if inventories show tighter supply or geopolitical risks resurface.

Sentiment and Catalysts

  • Market Sentiment: Bearish bias as traders reassess crude fundamentals without the war premium. X posts highlight oil’s vulnerability to sentiment shifts.

  • Catalysts: US EIA crude oil stock data, GDP updates, and any surprises from OPEC+ commentary or Middle East developments.

Wrap-up

On June 25, 2025, the ceasefire between Israel and Iran continues to reshape market dynamics. Crude oil leads the downturn, slipping below $65.00 as geopolitical supply risks recede. Gold and silver offer mixed responses — with gold pressured lower and silver firming on USD weakness. Risk-sensitive currencies like the Australian Dollar and British Pound benefit from improving sentiment. As traders reassess positions, upcoming US economic data and central bank commentary will likely steer short-term market direction.

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