Gold continued its notable gains on Friday after breaking above the bullish channel’s middle line on the four-hour chart. The yellow metal is currently trading near the first resistance level at $4,560; if it manages to break above this level, it could test the second resistance level at $4,603. On the downside, if the price falls below the daily pivot point of $4,505, it could retreat toward support levels near $4,454 then $4,414.
Financial markets are closely watching rising geopolitical tensions between the United States and Iran, as Washington signals tougher sanctions while Treasury Secretary Scott Bessent points to the possibility of further expanding U.S. bond buybacks. At the same time, oil prices are heading for a second consecutive weekly gain as concerns over Middle East supply disruptions continue to support crude prices. Together, these developments are keeping investors focused on geopolitical risks, U.S. financial conditions, and their potential impact on global markets.
Market Watch
United States: We Will Impose the ‘Harshest Sanctions’ on Iran
The United States has announced its intention to impose what it described as the “harshest sanctions in history” on Iran, as part of an escalation of economic pressure on Tehran amid ongoing tensions between the two countries and diminishing prospects for a diplomatic resolution to the crisis.
U.S. Treasury Secretary Scott Bessent said that Washington is preparing to implement a new package of sanctions aimed at further isolating Iran economically. He stressed that the U.S. administration intends to expand its use of economic pressure as part of an effort to reduce the need for further military action against Tehran.
Bessent also called on China to cooperate with U.S. efforts, particularly as Beijing continues to purchase significant volumes of Iranian oil. The U.S. administration has warned that countries or entities providing economic or commercial support to Iran could face economic consequences.
The move comes after U.S. President Donald Trump threatened to intensify what he described as an “economic war” against Iran, raising the possibility of increasing pressure on countries that provide Tehran with any form of economic support. Iran, meanwhile, has described U.S. sanctions as a form of “economic terrorism,” while China has called for a diplomatic solution to the crisis.
The U.S. Treasury Secretary is expected to provide further details on the new measures and sanctions during an upcoming press conference, as markets closely monitor political and economic developments that could have broader implications for global energy markets and international trade.
Bessent: Expanded Bond Buybacks Could Increase Further
U.S. Treasury Secretary Scott Bessent said that the United States could further increase the size of its Treasury bond buyback operations, indicating that purchases may exceed the level recently announced by the Treasury Department as part of efforts to support the long-term bond market and contain rising yields.
Earlier this week, the U.S. Treasury Department announced that it would double the size of its long-term bond buyback operations to at least $4 billion per operation, up from around $2 billion previously, covering securities with maturities ranging from 10 to 30 years.
In an interview with CNBC, Bessent said that the government plans to increase the size of the buyback operations, adding that purchases could exceed $4 billion per issue. He noted that the Treasury Department has a “large toolkit” available to address disruptions in the U.S. Treasury market.
The comments came after U.S. long-term Treasury yields rose sharply, with the 30-year yield approaching its highest level since 2007 before temporarily declining following the announcement of the expanded buyback program. However, the impact of the move appeared limited, as yields resumed their upward trend amid persistent investor concerns over inflation and the growing U.S. government debt.
Markets are now closely monitoring the Treasury Department’s next steps, particularly as pressure on the bond market and borrowing costs continues, while the U.S. administration seeks to bring greater stability to long-term yields.
Oil Heads for Second Consecutive Weekly Gain
Oil prices are heading for their second consecutive weekly gain, despite trading relatively steadily on Friday, as uncertainty persists over developments in the conflict between the United States and Iran and its potential impact on crude supplies from the Middle East.
In Asian trading, Brent crude futures edged down slightly to around $93.44 a barrel, while U.S. West Texas Intermediate (WTI) crude fell to approximately $86.76 a barrel. Nevertheless, both benchmarks remained on track for strong weekly gains, with Brent up more than 7% for the week and U.S. crude gaining more than 8%.
The main support for prices has come from continued supply disruptions in the Middle East, particularly as exports from several major producers in the region, including Saudi Arabia, Iraq, the United Arab Emirates and Kuwait, have been affected. Concerns have also persisted over oil shipments through the Strait of Hormuz and other key maritime routes.
Oil prices also extended their gains during Thursday’s session, rising more than 2% to their highest levels in about a month after geopolitical tensions escalated and the United States threatened to take tough economic measures against countries providing support to Iran.
Markets remain focused on political and military developments in the region. A prolonged disruption to supplies or further escalation of tensions could place additional upward pressure on oil prices in the coming period, while any progress toward de-escalation could limit further gains.