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Middle East Tensions: How It Impacts Gold, Oil & Forex

Date: June 17, 2025

⚠️ Geopolitical Context

  • On June 13, Israel struck Iranian nuclear and IRGC military sites, reportedly killing senior commanders, including IRGC chief Salami.
  • Between June 14–16, Iran fired over 150 ballistic missiles and drones targeting Israel; most were intercepted, but civilian casualties occurred.
  • Iran has renewed its threat to close the Strait of Hormuz, through which ~20% of global oil transits.

🪙 Gold: Surging on Safe-Haven Demand

Gold prices jumped to a nearly two-month high. Although it briefly eased to ~$3,393, bullion remains elevated above $3,400 as investors react to geopolitical uncertainty and fears of inflation pressure.

Outlook:

  • Support zone: $3,300–$3,400 (50-day EMA)
  • Resistance: ~$3,500 — watch for consolidation or breakout based on coming news

🛢️ Oil: Flash Volatility Amid Supply Risk

Following the June 13 strikes, Brent surged ~11% to ~$74 before stabilizing near $73–74, while WTI rose ~7% to ~$70–72. Analysts warn oil may reach $100–150 if the Strait sees disruption, although current sanctions and supply boosters could ease pressure later this year.

Outlook:

  • Key support: WTI $70–71, Brent $73–74
  • Scalpers can target tight trades when markets react to news, with stops just outside support zones

💱 Forex: Safe-Haven Flow Strengthens USD and JPY

The U.S. Dollar has strengthened with USD/JPY up ~0.4% to ~144.65 and EUR/USD down to ~1.1532 as investors de-risk. The Federal Reserve’s likely pause on rate cuts is reinforcing dollar demand amid elevated oil prices and inflation risk.

Key Levels:

  • USD/JPY support: 143.90–145.00
  • EUR/USD resistance: ~1.1575, support: ~1.1530

📊 Trading Strategies

Short-Term:

  • Gold: Buy near $3,400 with stop just below $3,300; target $3,500–$3,550
  • Oil: Long WTI on dips to $70–71; tight stop under $68
  • FX: Go long USD/JPY with stop under 143.9; avoid leverage spikes

Mid-Term:

  • Watch diplomatic developments around the Strait of Hormuz
  • Monitor central bank tone — Fed, ECB — to assess inflation impact
  • Look for gold pullbacks if tensions ease; oil vulnerable to overbought retracement

🧠 Summary

This is not just a temporary reaction — markets are beginning to price in sustained strategic risk. Safe-haven demand is up, inflation hedging is back, and volatility is surging.

Traders should focus on solid technical zones, avoid emotional entries, and size positions according to risk — not fear.

📅 Published: June 17, 2025 — by MZPrimer

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