Gold remains under downward pressure, having fallen on Wednesday after settling below the bearish channel’s lower line on the four-hour timeframe. The yellow metal is now poised to resume its notable decline, heading toward the support level at $4161. On the upside, if the price gains positive momentum, it could reclaim the daily pivot point at $4269, if it manages to break above, it could test resistance levels near $4334 then $4385.
Global markets remain focused on escalating geopolitical tensions in the Middle East after the United States launched new strikes against Iran, raising concerns about a broader regional conflict. At the same time, Tehran warned that it could resume hostilities if Israel targets Hezbollah in Lebanon, adding further uncertainty to an already fragile security environment. Meanwhile, energy markets received additional support as U.S. crude oil inventories fell for an eighth consecutive week, highlighting tightening supply conditions and reinforcing expectations of sustained strength in oil prices.
Market Watch
US launches new strikes against Iran
The United States launched new military strikes against Iranian targets on Wednesday, marking a fresh escalation in tensions between the two countries following the downing of a U.S. Apache helicopter near the Strait of Hormuz, according to the U.S. Central Command (CENTCOM).
Media reports indicated that the U.S. strikes targeted Iranian air defense positions and radar systems in what Washington described as “defensive measures” in response to the helicopter incident. U.S. President Donald Trump stated that the United States would respond forcefully to any attacks against its forces or interests in the region.
Meanwhile, Iran announced that it had carried out missile and drone attacks against U.S. military facilities in Jordan, Kuwait, and Bahrain, describing the operations as retaliation for recent American strikes. Several Gulf states reported intercepting part of the attacks without any reported casualties.
The latest developments have raised concerns about a broader military confrontation in the Middle East, particularly as tensions continue to grow around the Strait of Hormuz, one of the world’s most critical oil shipping routes. The escalation has also impacted financial markets and energy prices, with oil prices rising amid fears of potential disruptions to global supplies.
Tehran vows response if Israel targets Hezbollah
Iran has warned that it could resume military operations against Israel if the latter continues its attacks on Hezbollah in Lebanon, despite a temporary halt in direct exchanges of fire following international diplomatic efforts aimed at containing the latest regional escalation.
According to reports, Tehran informed international mediators that any lasting de-escalation agreement must include an end to Israeli military operations in Lebanon, stressing that the security of its regional allies is an essential component of any broader arrangement to reduce tensions. Iranian officials also emphasized that continued Israeli strikes against Hezbollah positions could trigger a renewed response and the resumption of hostilities.
The statements come just days after Iran and Israel exchanged attacks in what has been described as one of the most serious direct confrontations between the two sides since the previous ceasefire reached earlier this year. The escalation has fueled concerns that the conflict could expand to other fronts across the region, particularly in Lebanon, where clashes between Israeli forces and Hezbollah continue.
Israel has not immediately commented on the Iranian warnings. However, Israeli officials have repeatedly stated that the country will continue to target what it considers security threats originating from Lebanese territory. Analysts warn that any renewed escalation could undermine international efforts to stabilize the ceasefire and prevent a broader regional conflict.
U.S. crude inventories fall for eighth week
U.S. crude oil inventories declined for the eighth consecutive week, according to data released on Wednesday, signaling continued strength in fuel demand and tighter supply conditions in the world’s largest energy-consuming economy.
According to data from the American Petroleum Institute (API), crude stockpiles fell during the week ending June 5, extending a downward trend that began in late April. Investors are now awaiting official figures from the U.S. Energy Information Administration (EIA) to confirm the size of the reported decline.
The inventory draw comes at a time when global energy markets remain on edge due to rising geopolitical tensions in the Middle East, increasing concerns over potential supply disruptions and providing support to oil prices in recent trading sessions.
Analysts noted that the continued decline in U.S. crude inventories reflects stronger domestic fuel demand as the summer travel season gets underway, alongside lower imports and higher refinery utilization rates. These factors could help keep oil prices supported in the coming weeks if inventory levels continue to decrease.
Brent crude and U.S. West Texas Intermediate (WTI) crude prices rose following the release of the data, as market participants assessed the impact of tightening inventories on the global oil balance.
Looking Ahead
Investors are now awaiting the release of the U.S. Consumer Price Index (CPI) data later today for further clues on the inflation outlook and the Federal Reserve’s future monetary policy path. The inflation report is expected to play a key role in shaping market expectations regarding the timing and pace of potential interest rate adjustments, with traders closely monitoring the figures for signs of easing price pressures.