Gold surged on Wednesday as it held above the bearish channel’s middle line. The yellow metal is currently trading near the first resistance level at $4857; if it breaks above this level, it could head toward the second resistance level at $4927. On the downside, if the price falls below the daily pivot point at $4740, it may test support levels of $4661 and then $4580.
Global financial markets are showing clear signs of relief and recalibration as geopolitical tensions between the United States and Iran take a temporary pause. Following U.S. President Donald Trump’s approval of a two-week ceasefire with Iran, investors have responded swiftly to the prospect of de-escalation in one of the world’s most critical energy regions. The agreement, which includes conditions tied to the reopening of the Strait of Hormuz, has helped ease fears of prolonged supply disruptions and military escalation.
This shift in sentiment has been most evident in the energy markets, where Brent crude oil has lost momentum and dropped sharply below the $100 per barrel mark. The decline reflects renewed confidence that oil flows may gradually normalize after weeks of volatility driven by conflict-related risks.
Meanwhile, currency markets have mirrored this cautious optimism, with the U.S. dollar weakening significantly. The dollar index has fallen to its lowest level in a month, as investors scale back safe-haven positions and adjust expectations for interest rates amid improving geopolitical conditions.
Together, these developments show how closely global markets are linked to geopolitical dynamics, with even temporary diplomatic breakthroughs able to cause big moves across commodities, currencies, and broader financial assets.
Market Watch
Trump approves two-week ceasefire with Iran to calm tensions
Hours before his deadline, President Donald Trump announced that he has consented “to suspend the bombing and attack of Iran for a period of two weeks” in exchange for Iran reopening the Strait of Hormuz. He had earlier threatened that “a whole civilization will die tonight” if Iran did not reach an agreement by his deadline. He dismissed worries about potential war crimes and promised large U.S. attacks on civilian infrastructure. Iran announced that, if ships cooperate with Iranian military forces, it will provide safe passage of marine trade via the Strait of Hormuz for a period of two weeks. Iran would cease military assaults if it were not attacked, according to Foreign Minister Abbas Araghchi.
Brent crude oil loses momentum, falling below $100 a barrel
After the US and Iran agreed to a two-week ceasefire, oil prices fell below $100 per barrel, allaying concerns of a protracted disruption of supplies. WTI saw its worst decline in over six years, recently trading close to $96 a barrel, while Brent dropped as much as 16% before trading around $94/bbl. In return for Tehran reopening the Strait of Hormuz, the ceasefire is expected to end the US-Israeli military operation. According to reports, the proposed framework permits Iran and Oman to charge transit fees to ships that cross the strait. Volatility is anticipated to continue throughout negotiations later this week, and future price direction will depend on whether discussions result in a long-lasting accord and a sustained normalization of flows through the strait.
Dollar index sank to its lowest level in a month
The dollar sank to its lowest level in a month while the euro, yen, Aussie, and kiwi rallied hard in Asian trading on Wednesday after U.S. President Donald Trump said he had agreed to a two-week ceasefire with Iran. The yen strengthened 0.7% against the greenback to 158.50 per dollar. The euro was up 0.7% at $1.1677, while the British pound appreciated 0.8% to $1.3403. The Australian dollar climbed 1.2% to $0.7063, and its New Zealand counterpart jumped 1.1% to $0.5795.
Looking Ahead
The Federal Open Market Committee (FOMC) will release the minutes from its March 17-18, 2026, policy meeting today, Wednesday, April 8, 2026, at 18:00 GMT (14:00 EDT).