Gold prices opened the week with significant losses, as they continue to hover near the secondary uptrend line on the four-hour chart. If gold manages to break below the aforesaid trend line, the decline could extend toward support levels near $4,043 then $3,993. On the upside, if the price rises above the daily pivot point of $4,080, it could test resistance levels at $4,129 then $4,172.
Gold prices slid on Monday as fears of a closure of the Strait of Hormuz drove oil prices sharply higher, reviving expectations of elevated interest rates to combat inflationary pressures from escalating hostilities in the Middle East.
Market Watch
Iran targets US facilities in Gulf states
U.S. and Iranian forces exchanged heavy missile and drone assaults, with Tehran targeting U.S. facilities in states across the Gulf and saying it had again closed the vital Strait of Hormuz, sending oil prices higher.
Iran’s Revolutionary Guards said on Monday they targeted U.S. military facilities in Bahrain and Kuwait, destroyed radar systems in Oman, and struck fuel tanks and ammunition depots at Prince Hassan Air Base in Jordan in their latest response to another wave of U.S. strikes.
Oil surges on Strait of Hormuz closure fears
Oil prices surged over 4% on Monday as energy shipments via the Strait of Hormuz remained under threat, with the U.S. and Iran announcing renewed military strikes.
U.S. forces completed another wave of strikes against Iran on Sunday, hitting dozens of targets at multiple locations with precision munitions, the Central Command said. Iran’s Revolutionary Guards said on Monday they attacked U.S. military bases in Kuwait and Bahrain.
Dollar climbs on renewed Middle East attacks
The dollar rose against most of its peers as a renewal of hostilities in the Middle East fanned inflation fears and raised prospects for interest rate hikes among global central banks.
The dollar is currently looking to hold onto the gains it made during the previous trading session, which amounted to 0.1%.
Looking Ahead
No major economic news today, investors are watching the last development in the Middle East.