Gold prices rose slightly in early trading on Wednesday, struggling to hold above the daily pivot point of $5185. If the yellow metal stabilizes above this pivot point, it could help prices resume their climb, heading towards resistance levels at $5240 then $5265. On the downside, if the price loses positive momentum, it may test support levels at $5149 then $5123.

Gold climbed modestly on Wednesday on safe-haven demand and as ‌a retreat in oil prices calmed inflation worries, reviving expectations for potential Federal Reserve rate cuts this year as investors awaited U.S. CPI data that may offer more cues.

Market Watch

Iran responds to US and Israeli airstrikes

The U.S. and Israel exchanged airstrikes with Iran across the Middle East on Wednesday, while Tehran’s besieged government warned its security forces are on high alert with “fingers on the trigger” to crush any anti‑government protests.

Following an exchange of ‌some of the heaviest bombardments in the region yet, the combatants renewed their attacks on opposing targets in Israel, Lebanon and the Gulf as the war stretched into its 12th day.

Iran slams US for spreading fake news on Hormuz

Iran’s Foreign Minister Abbas Araghchi on Wednesday accused the United States of spreading “fake news” about activity in the Strait of Hormuz, alleging that Washington was attempting to manipulate global financial markets.

Araghchi’s remarks on X followed reports that US officials walked back a claim that an American warship had escorted an energy tanker through the strategically vital strait earlier in the day.

Brent dips as IEA eyes historic oil reserve release

The International Energy Agency has proposed releasing the largest amount of oil reserves in its history to lower crude prices, which have risen sharply against the backdrop of the US-Israeli war with Iran, according to officials familiar with the matter.

The officials said the proposed amount would exceed 182 million barrels, which is the amount that IEA member countries pumped into the market in two batches in 2022 following Russia’s full-scale invasion of Ukraine.

Looking Ahead

Today at 12:30 GMT, the annualized U.S. Consumer Price Index for February will be released, with economists expecting it to hold steady at 2.4%, unchanged from January.