Gold fell on Monday, as it remained below the downtrend line on the four-hour chart and is heading towards the second consecutive session of decline. The yellow metal is currently trading near the first support level of $4,303; if it breaks below this level, the decline could extend toward the next support level at $4,263. On the upside, if the price rises above the daily pivot point of $4,337, it may test resistance levels near $4,392 then $4,430.
Global markets are closely monitoring developments across the energy and currency markets, with oil prices rising ahead of potential U.S.-Iran talks while the dollar remains near a seven-week high. At the same time, geopolitical tensions and uncertainty over future U.S. monetary policy continue to influence investor sentiment, keeping attention focused on energy supplies, inflation expectations, and the outlook for major financial markets.
Market Watch
Houthis Attempt to Seize Mountainous Areas in Yemen
Fighting continues to escalate along several fronts in western and southwestern Yemen, as the Houthi group seeks to advance toward strategically important mountainous areas in Taiz and Lahj governorates, according to reports published on Tuesday, September 22, 2026.
The fighting is particularly concentrated around the Kahboub Mountains and areas extending from Al-Wazi’iyah and Jabal Jardad toward the vicinity of the Bab al-Mandab Strait. The Houthis are seeking to gain control of high ground overlooking the coast and the strategic maritime passage. Military analyses suggest that controlling these elevated positions could provide the group with greater defensive depth and help secure its coastal positions and supply routes.
Yemeni government forces are reportedly engaged in heavy fighting to repel Houthi attacks on several fronts, while the Houthis have continued their military movements aimed at capturing elevated positions. Reports indicate that clashes remain ongoing in areas stretching from Bab al-Mandab in the west to the Jabal Habashi fronts in Taiz.
The mountainous areas are strategically important because of their proximity to Bab al-Mandab and the Red Sea. Control of the heights overlooking the coast could affect the ability of the warring sides to secure their positions and move between coastal and inland areas.
The developments come amid a broader escalation in Yemen. Reuters reported that the Houthi advance toward the highlands followed their capture of parts of the western coastline, while the U.S. response to the latest developments remains under close observation amid reports that planned U.S. airstrikes had been called off.
Oil Prices Rise Ahead of Potential U.S.-Iran Talks
Oil prices rose on Tuesday, September 22, 2026, recording their first gain in five sessions as investors awaited the possibility of talks between the United States and Iran on the sidelines of the United Nations General Assembly meetings this week. Supply risks in the Middle East remained a key focus for energy markets.
November Brent crude futures rose by around 1.7% to $102.06 per barrel, while October West Texas Intermediate (WTI) futures, which expire today, gained around 1.7% to $97.40 per barrel. The more actively traded November WTI contract also climbed around 1.4% to $93.65 per barrel.
The gains came after crude prices declined for four consecutive sessions, as traders monitored signals over a possible meeting between U.S. President Donald Trump and Iranian President Masoud Pezeshkian during the U.N. meetings in New York. Trump has expressed willingness to meet his Iranian counterpart, while Washington and Tehran exchanged threats over the weekend.
Meanwhile, investors are closely monitoring oil supply flows through the Strait of Hormuz, following an increase in oil shipments over the weekend. Analysts said that any diplomatic progress between Washington and Tehran could ease concerns over supply disruptions, while a breakdown in talks could keep geopolitical risk premiums elevated in oil prices.
Markets remain highly sensitive to political and military developments in the region, amid continued concerns over the security of oil exports and tanker traffic through key maritime routes in the Middle East.
The Dollar Hovers Near a Seven-Week High
The U.S. dollar remained firm on Tuesday, September 22, 2026, trading near a seven-week high as investors continued to assess expectations for the Federal Reserve’s monetary policy and the outlook for U.S. interest rates.
The U.S. Dollar Index (DXY), which measures the greenback against a basket of six major currencies, traded around 100.4, remaining close to its highest level in seven weeks. The index briefly climbed to around 100.67 before giving up some of its gains.
The dollar has been supported by expectations for a more hawkish Federal Reserve stance, with markets assessing the possibility of further interest-rate increases amid persistent inflation concerns. Higher U.S. interest rates and yields can increase the appeal of dollar-denominated assets to investors.
In currency markets, the Japanese yen remained under pressure against the dollar, trading near 157.4 yen per dollar. Investors are also monitoring signals from Japanese authorities regarding potential intervention to support the yen.
Meanwhile, markets are closely watching developments in oil prices and potential talks between the United States and Iran, as any improvement in relations could affect energy prices and inflation expectations, potentially influencing the future path of U.S. monetary policy.