Gold prices continued their significant gains on Thursday after breaking above the key level of $4700 per ounce on the four-hour chart. The yellow metal is currently trading near the first resistance level at $4736; if it settles above this level, it may continue to rise toward the next resistance level at $4791. On the downside, if the price falls below the daily pivot point of $4668, it may test support levels at $4604 and then $4561.
Global markets continue to closely monitor geopolitical and economic developments as Iran reviews a new U.S. proposal aimed at ending the war, raising hopes for a potential peace agreement that could ease regional tensions. Meanwhile, the U.S. dollar and Treasury yields declined as investor risk appetite improved amid anticipation surrounding ongoing political negotiations. In energy markets, Brent crude remains under negative pressure due to concerns over slowing global demand and rising oil supply, while uncertainty surrounding future market stability and global energy supplies continues to weigh on sentiment.
Market Watch
Iran reviewing US proposal to end war
Iran’s Foreign Ministry announced that Tehran is currently reviewing a new U.S. proposal aimed at ending the ongoing conflict in the region after more than two months of escalating tensions. According to international media reports, the American proposal includes a 14-point memorandum covering a ceasefire, partial sanctions relief, and broader negotiations regarding Iran’s nuclear program and security in the Strait of Hormuz.
An Iranian Foreign Ministry spokesperson stated that Tehran will carefully examine the proposal before delivering an official response through mediators, stressing that any potential agreement must guarantee a “just peace” and protect Iranian interests. Meanwhile, U.S. reports indicated that significant progress has been made in the talks between Washington and Tehran, helping ease concerns in global markets and reducing fears over disruptions to energy supplies.
The latest developments come as international observers and financial markets closely monitor the possibility of reaching a lasting truce that could put an end to the military escalation, which has heavily impacted global trade routes and oil prices.
Dollar, Treasury yields ease on peace deal hopes
The U.S. dollar and Treasury yields declined during Thursday’s trading session as investor optimism grew over the possibility of reaching a peace agreement that could ease geopolitical tensions in the Middle East. The decline followed reports indicating progress in indirect talks between the United States and Iran, boosting risk appetite and encouraging investors to shift toward higher-risk assets.
The U.S. Dollar Index weakened against a basket of major currencies, while yields on 10-year U.S. Treasury bonds moved lower as demand for safe-haven assets increased amid close market monitoring of political developments. Oil prices also showed limited fluctuations, as expectations grew that a potential agreement could help stabilize global energy supplies and reduce concerns surrounding trade and shipping routes.
Analysts believe markets will remain highly sensitive to any official statements from Washington or Tehran in the coming days, particularly as negotiations continue and international mediators work toward securing a lasting truce to end the military escalation.
Brent crude oil under negative pressure
Brent crude prices faced negative pressure during Thursday’s trading session as concerns over slowing global oil demand and rising supply continued to weigh on international energy markets. Brent futures declined as investors closely monitored political negotiations in the Middle East and their potential impact on global supply stability.
Oil prices also came under additional pressure following a larger-than-expected increase in U.S. crude inventories, alongside growing concerns about the global economic outlook, particularly in China and Europe. Analysts believe the oil market remains vulnerable to uncertainty amid ongoing geopolitical volatility and shifting demand expectations for the second half of the year.
At the same time, investors are awaiting further signals from the OPEC+ alliance regarding future production levels, as any decision to adjust output could play a major role in determining oil price trends in the coming weeks.
Looking Ahead
Global markets are awaiting the release of the U.S. Initial Jobless Claims data later today, one of the key economic indicators used to assess the strength of the American labor market. Investors are closely watching the report due to its direct impact on expectations for Federal Reserve monetary policy, as well as its potential influence on the U.S. dollar, equities, and Treasury markets in the near term.