Gold stabilized on Thursday after failing to hold above the key level of $4800 in the previous session. The yellow metal is currently trading near the daily pivot point at $4745; if it breaks above, it could head toward resistance levels near $4820 then $4876. On the downside, if the price falls below the aforesaid pivot point, it may test support levels at $4640 then $4575.
Global markets opened Thursday on a cautious note as geopolitical and economic developments converged to shape investor sentiment. Rising tensions in the Middle East followed reports that Israel launched airstrikes on Lebanon, heightening concerns over regional stability and potential spillover effects on energy prices. At the same time, the release of the latest minutes from the Federal Reserve’s March meeting revealed growing support among policymakers for further interest rate hikes, signaling a more hawkish stance amid persistent inflation pressures. Supporting this shift in tone, the U.S. Dollar Index rebounded from its lowest level in a month, reflecting renewed demand for the dollar as investors reassessed risk and monetary policy expectations.
Market Watch
Israel launches airstrikes on Lebanon amid escalating tensions
Just hours after the US and Iran announced a two-week ceasefire, Israel conducted simultaneous airstrikes on Lebanon’s capital, Beirut, as well as the country’s eastern and southern areas, killing 254 and injured 1,165, according to Lebanese authorities. The ceasefire agreement, reached on the 40th day of the conflict, did not stop the strikes. After the attacks, Lebanon proclaimed a day of national mourning. Targeting the Tel Hayyat neighborhood of Beirut and nearby areas, Israeli airplanes carried out almost 100 bombings without warning. It was one of the worst days since Israel’s ground offensive started on March 2, according to the Lebanese Civil Defense.
Fed March minutes show rising support for rate hikes
According to the minutes of their March 17–18 meeting, an increasing number of Federal Reserve policymakers believed last month that interest rate increases might be necessary to combat inflation that continued to surpass the central bank’s 2% target, especially given the inflationary impact of the U.S.-Israeli war with Iran. The minutes stated, “Some participants judged that there was a strong case for a two-sided description of the (Federal Open Market) Committee’s future interest rate decisions in the post-meeting statement, reflecting the possibility that upward adjustments to the target range for the federal funds rate could be appropriate if inflation were to remain at above-target levels,” referring to support for language in the Fed’s policy statement that would imply the Fed might either raise or lower rates in the future.
The dollar index rebounds from its lowest level in a month
On April 9, 2026, the US dollar index recovered from its lowest point in more than a month, which had been struck early in the week due to persistent geopolitical anxiety and waning hope for a Middle East cease-fire. On Wednesday, April 8, 2026, the dollar dropped below 99.00 in response to reports of a two-week ceasefire between the United States and Iran. However, when concerns about the agreement’s durability increased and oil prices increased and safe-haven flows resumed, the dollar strengthened.
Looking Ahead
Markets wait for the US jobs report, a key indicator expected to shape the outlook for monetary policy.