Gold slipped on Friday as it remained below the daily pivot point of $4466, trading beneath the key level of $4500. The yellow metal is currently poised to resume its decline, targeting support levels at $4410 then $4372. On the upside, if the price rises above the aforesaid pivot point, it could test resistance levels near $4512, then $4546.
Global markets remained focused on rising geopolitical tensions in the Middle East after Hezbollah rejected a proposed Lebanon ceasefire agreement, raising concerns over the prospects for regional stability. At the same time, Iranian oil exports fell to their lowest level in six years, highlighting mounting pressures on the country’s energy sector and tightening global crude supplies. Against this backdrop, investors increased their demand for safe-haven assets, putting the U.S. dollar on track for weekly gains as uncertainty continued to dominate market sentiment.
Market Watch
Hezbollah rejects Lebanon ceasefire deal
Hezbollah has rejected the ceasefire agreement reached through U.S.-mediated efforts between Lebanon and Israel, casting doubt on the implementation of the deal and the prospects for ending ongoing hostilities along the Lebanese-Israeli border.
Hezbollah Secretary-General Naim Qassem stated that the proposed agreement was “unacceptable,” stressing that the group would not halt its operations unless Israeli forces fully withdrew from Lebanese territory. He argued that the terms of the agreement fail to provide adequate protection for Lebanon and do not meet the movement’s conditions.
The rejection came after Washington announced that Lebanese and Israeli officials had agreed on a framework aimed at ending military confrontations. However, Hezbollah was not a direct participant in the negotiations. Meanwhile, exchanges of fire continued, with Israel carrying out airstrikes in southern Lebanon and Hezbollah claiming attacks on Israeli positions.
Analysts believe Hezbollah’s stance could complicate diplomatic efforts to secure a lasting ceasefire and may affect broader U.S. initiatives aimed at easing regional tensions, including negotiations related to Iran and Middle East security.
Iranian oil exports fall to lowest level in six years
Iran’s crude oil and condensate exports fell to their lowest level in at least six years during May, amid ongoing disruptions affecting shipments and limiting the country’s ability to supply international markets.
According to data from tanker-tracking firms, Iranian oil exports declined to between 209,000 and 260,000 barrels per day in May, down sharply from approximately 1.34 million barrels per day in April. The steep drop marks one of the most significant declines in Iranian oil exports in recent years.
The downturn comes as Tehran faces growing challenges in maintaining its oil shipments, while geopolitical tensions in the Gulf region and weaker Chinese demand for Iranian crude have further weighed on exports. Volumes stored aboard tankers and in floating storage facilities also declined, raising concerns about continued pressure on Iran’s energy sector in the coming months.
Analysts believe the sustained decline in exports could reduce Iran’s oil revenues and place additional strain on the domestic economy, particularly if current restrictions on shipping and trade persist. The reduction in Iranian supplies has also contributed to concerns over the balance of global oil markets at a time when energy prices remain sensitive to geopolitical developments across the Middle East.
Dollar set for weekly gains on rising geopolitical concerns
The U.S. dollar was on track to post weekly gains against a basket of major currencies on Friday, supported by increased demand for safe-haven assets amid escalating geopolitical risks in the Middle East and continued uncertainty surrounding regional developments.
The dollar index, which measures the greenback against six major currencies, edged higher as investors sought safety amid concerns that growing geopolitical tensions could disrupt energy markets and weigh on global trade.
The U.S. currency also received additional support from market anticipation ahead of the release of key U.S. employment data, which could provide fresh clues about the future path of monetary policy by the Federal Reserve. Analysts believe that signs of continued strength in the labor market could reinforce expectations that interest rates will remain elevated for longer, enhancing the appeal of dollar-denominated assets.
Meanwhile, several risk-sensitive currencies came under pressure as investors shifted toward defensive positions. Market participants are also closely monitoring developments related to U.S.-Iran negotiations and broader diplomatic efforts aimed at easing tensions across the region.
Analysts noted that persistent geopolitical uncertainty could continue to support the dollar in the near term, particularly if investor caution remains elevated and demand for safe-haven assets stays strong.