Gold edged lower on Thursday after failing to break the bearish channel’s middle line. Meanwhile, the yellow metal is looking to hold above SMA (9) on the four-hour chart to reclaim the pivot point at $4555 then the resistance levels of $4592 and $4625. On the downside, if the price continues its downward trend, it may test support levels near $4500 then $4465.
Global markets remained focused on developments surrounding U.S.-Iran negotiations after U.S. President Donald Trump said talks had entered their final stages, boosting optimism over a potential agreement and helping the U.S. dollar stabilize. Meanwhile, investors also monitored signals from Federal Reserve policymakers, who indicated they remain open to further interest rate hikes if inflation pressures persist, reinforcing expectations that U.S. monetary policy could stay restrictive for longer.
Market Watch
Trump: negotiations with Iran in final stages
U.S. President Donald Trump said on Wednesday that the ongoing negotiations between the United States and Iran have reached their “final stages,” noting that Washington is awaiting an “appropriate response” from the Iranian side before taking further steps.
Speaking to reporters, Trump stated that his administration is “giving diplomacy one last chance,” while stressing that the United States may resort to “tough measures” if no agreement is reached. He also emphasized that he is not seeking a partial or limited deal, but rather a comprehensive settlement addressing the key disputes between both sides.
Trump’s remarks come amid rising tensions in the region and continuing indirect talks over Iran’s nuclear program and broader security issues in the Middle East, while global markets closely monitor developments that could impact oil prices and international trade flows.
Dollar stabilizes on Iran deal optimism
The U.S. dollar steadied in Thursday trading amid growing optimism over the possibility of reaching a nuclear agreement between the United States and Iran, as investors monitored developments in the negotiations and their potential impact on global markets and energy prices.
The dollar index, which measures the U.S. currency against a basket of major currencies, remained stable near its lowest levels in several weeks, supported by improved risk appetite after positive comments from U.S. officials regarding progress in talks with Tehran.
U.S. President Donald Trump said that negotiations with Iran were “going well,” while reports indicated that both sides were moving closer to a temporary agreement that could ease geopolitical tensions in the Middle East.
Expectations of a possible de-escalation reduced demand for the dollar as a safe-haven asset, alongside a decline in oil prices and gains in global equities, as investors awaited official signals regarding the future of the Iranian nuclear deal.
Fed policymakers show openness to further rate hikes
Several policymakers at the U.S. Federal Reserve signaled openness to the possibility of raising interest rates again, amid persistent inflationary pressures and the continued strength of the U.S. labor market, reinforcing market expectations that monetary policy could remain restrictive for a longer period.
According to comments from Fed officials and the minutes of the latest policy meeting, the pace of inflation easing remains insufficient to ensure a return to the central bank’s 2% target, stressing that the Federal Reserve stands ready to take additional measures if economic data warrant further action.
Some policymakers noted that the U.S. economy continues to show notable resilience, particularly with solid consumer spending and stable employment levels, which could give the Fed room to keep interest rates elevated or even raise them further should price pressures accelerate again.
The remarks came as markets awaited fresh U.S. economic data, while investors reassessed the likelihood of interest rate cuts during the second half of the year. The U.S. dollar strengthened and expectations for monetary easing declined following the release of the meeting minutes.
Looking Ahead
Markets are awaiting the release of the U.S. Manufacturing and Services PMI data, along with weekly U.S. jobless claims figures, for further signals on the strength of the American economy and the future path of Federal Reserve monetary policy.