Gold rose on Wednesday, erasing some of the previous session’s losses, as it now looks to regain its upward trend in the near term. Meanwhile, gold is attempting to break above the daily pivot point at $4,133; if it succeeds, it could test resistance levels at $4,193 then $4,248. On the downside, if the price retreats, it may test support levels near $4,069 then $4,021.  

Gold prices edged higher from a near one-week low on Wednesday, as investors looked ahead to minutes of the Federal Reserve’s June meeting with renewed inflation concerns from fresh U.S.-Iran strikes capping gains in the precious metal.

Market Watch

Iran targets sites in Bahrain, Kuwait after wave of US strikes

Iran’s Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait on Wednesday after the U.S. launched a wave of military strikes on Iran in response to attacks on tankers in the Strait of Hormuz.

In the latest ​blow to the fragile ceasefire agreement, the Islamic Revolutionary Guard Corps said it carried out a joint missile and drone operation against key U.S. military sites in Bandar Salman, Bahrain’s Fifth Naval District and Ali ‌Al Salem Air Base in Kuwait, and shot down a U.S. MQ-9 drone attempting to interfere in the operation.

Oil climbs more than 3%

Oil prices gained more than 3% ​on Wednesday after Iran and the U.S. military traded airstrikes and Washington reimposed crude sales sanctions on Tehran, raising fears ‌their fragile truce was unravelling and Middle East supplies could be disrupted again.

Dollar firms near one-week high

The U.S. dollar held around its highest level in a week in Asian trade on Wednesday as the U.S. and ​Iran traded fresh attacks, while New Zealand’s currency jumped after the country’s central bank lifted ‌interest rates and flagged further tightening.

The dollar is currently looking to hold onto the gains it made during the previous trading session, which amounted to 0.3%.

Looking Ahead

Investors are awaiting the release of the Federal Open Market Committee (FOMC) meeting minutes today, looking for any clues regarding the direction of monetary policy and the path of interest rates in the coming period.

The minutes may provide additional details on the Federal Reserve members’ assessment of inflation and growth risks, which could influence movements in the dollar, gold, and financial markets.