Gold rose on Wednesday, erasing some of the previous session’s losses. The yellow metal is currently testing a reverse wedge pattern; if it breaks above, it could retest resistance levels at $4813 and then $4905. On the downside, if the price falls below the daily pivot point at $4740, it may continue its downward wave, potentially extending toward $4648 and then $4576.
Global markets and geopolitical observers are closely monitoring a series of interconnected developments shaping the current economic and security landscape. Washington’s decision to prolong its ceasefire with Iran indefinitely has raised cautious hopes for renewed diplomacy, though underlying tensions remain unresolved.
At the same time, monetary policy expectations are being reassessed after Kevin Warsh clarified that he has made no commitments to Donald Trump regarding cutting interest rates, reinforcing uncertainty over the future direction of U.S. monetary policy.
Meanwhile, the situation in the Strait of Hormuz continues to cast a shadow over global trade and energy markets, with shipping traffic still largely halted despite the ceasefire, highlighting ongoing security risks in one of the world’s most vital oil transit routes.
Market Watch
Washington to prolong Iran ceasefire indefinitely
The United States announced today that it has extended the ceasefire agreement with Iran indefinitely, in a move reflecting both sides’ willingness to ease tensions and create space for further diplomatic efforts. The decision came after a series of indirect consultations that showed relative progress on some disputed issues, despite the persistence of unresolved points.
U.S. officials confirmed that the extension aims to provide a more stable environment to continue negotiations, particularly on security and nuclear-related matters, noting that the diplomatic option remains strongly on the table. For its part, Tehran welcomed the step, considering it a positive signal that could be built upon to achieve broader understandings.
Analysts believe that extending the ceasefire may help reduce the likelihood of military escalation in the region; however, it remains contingent on both parties’ commitment and the continuation of constructive dialogue. International efforts are expected to continue supporting this path in the coming period, amid cautious anticipation from global markets and concerned countries.
Kevin Warsh: No pledge to Trump on cutting interest rates
In an attempt to reassure U.S. senators considering his confirmation to lead the U.S. central bank that he would act independently of the White House while pursuing broad reforms, Federal Reserve chief nominee Kevin Warsh stated on Tuesday that he had not promised President Donald Trump about lowering interest rates.
The 56-year-old lawyer and financier stated that in his discussions with Trump regarding the position, “the president never asked me to commit to interest rate cuts … he did not demand it … the president never asked me to commit to any such thing, nor would I do so.” The hearing covered everything from Warsh’s demands for “regime change” at the Fed to heated discussions about his personal finances.
Shipping traffic through Hormuz still largely halted
The Strait of Hormuz, one of the world’s most critical maritime routes for oil transport, witnessed a near-total disruption in shipping traffic today amid escalating geopolitical tensions in the region.
Maritime reports indicated that several shipping companies have halted or rerouted their vessels away from the strait as a precaution against potential risks, as security concerns continue to rise. The strait serves as a vital artery for a significant share of global oil exports, making any disruption there highly impactful on energy markets.
In this context, global oil prices surged notably during today’s trading session, driven by growing fears of supply disruptions, while international bodies warned of broader economic consequences should the situation persist.
Analysts believe that continued disruption in the Strait of Hormuz could lead to severe disturbances in global supply chains, in addition to increasing inflationary pressures, particularly for energy-importing countries.
So far, no official statements have clarified how long the disruption may last, as global markets continue to closely monitor developments.