Gold prices dropped 1.33% due to easing geopolitical tensions and signs of unchanged interest rates
From Investing.com: 2025-06-25 04:33:00
Gold prices slipped by 1.33% as geopolitical tensions eased with a ceasefire announced between Israel and Iran. However, the ceasefire has already been violated, indicating fragility in the agreement. The market remains cautious as recent US strikes on Iranian nuclear facilities only temporarily hindered progress, potentially reigniting tensions. Federal Reserve Chair Jerome Powell hinted at unchanged interest rates, but a rate cut in July is possible. XAU/USD rose during Asian trading sessions, awaiting Powell’s speech for more clues on US interest rates.
The euro rose by 0.1% against the USD on dovish Fed comments and weaker US economic data. Powell suggested that tariffs could lead to upward pressure on inflation, leaving room for rate cuts. Weak US data increased expectations for a rate cut, supporting the euro. EUR/USD continued to rise, with key levels to watch at 1.16300 and 1.14500.
The Japanese Yen declined towards 145.000 after the Bank of Japan’s potentially hawkish rhetoric in the Summary of Opinions. While some policymakers suggested decisive action, the overall consensus favoured patience and data-dependent decisions. Global uncertainties, including US trade tensions, were highlighted. The BoJ’s balanced tone suggested gradual rate shifts. Japanese negotiator Ryosei Akazawa plans a seventh visit to Washington for tariff removal talks, amid ongoing regional risks.
Read more at Investing.com: Gold Prices Drop as Powell Signals Rate Pause, Geopolitical Tensions Ease