Gold stabilized on Wednesday, after posting a significant decline in the previous session, holding below the bearish channel’s middle line on the four-hour chart. The yellow metal is currently trading within a bearish channel, heading toward testing support levels at $4481 then $4452. On the other hand, if the price breaks the daily pivot point of $4534, it could retest resistance levels near $4563 then $4588.
Global markets remained on edge as geopolitical tensions between the United States and Iran intensified after Tehran accused Washington of violating the ceasefire agreement. Oil prices steadied as investors closely monitored the latest developments in the conflict, while the U.S. dollar strengthened amid fading hopes for a near-term peace deal and growing demand for safe-haven assets
Market Watch
Iran: U.S. violated ceasefire agreement
Iran said on Wednesday that the United States had violated the ceasefire agreement, accusing Washington of carrying out new military strikes targeting sites in Hormozgan province near the Strait of Hormuz, a move that could further complicate ongoing de-escalation efforts and negotiations between the two sides.
Iran’s Foreign Ministry stated that the U.S. attacks represented a “clear violation” of the ceasefire agreement signed last April, stressing that Tehran “will not leave any hostile act unanswered.” Reports indicated that U.S. forces targeted missile launch platforms and Iranian boats that Washington claimed were attempting to plant naval mines in the area.
Meanwhile, the United States said the strikes were part of “defensive measures” aimed at protecting international shipping in the Strait of Hormuz, as indirect talks between Washington and Tehran continue through regional and international mediation in an effort to reach a broader de-escalation agreement.
The latest developments have increased tensions across the region and raised concerns over maritime security and global oil supplies, while investors await further signs on whether ceasefire efforts between the U.S. and Iran will hold or collapse.
Oil steadies as markets await fresh U.S.-Iran developments
Oil prices stabilized during Wednesday’s trading session as markets monitored the latest developments in the conflict between the United States and Iran, amid ongoing military tensions and concerns over energy supplies in the Middle East.
Brent crude traded near $84 per barrel, while U.S. West Texas Intermediate crude remained above $80 per barrel, after markets experienced sharp volatility in recent sessions following an exchange of military strikes and statements between Washington and Tehran.
Investors are closely watching for any signs of further escalation that could disrupt shipping through the Strait of Hormuz, a key passageway for nearly one-fifth of global oil supplies, especially after Iran accused the United States of violating the ceasefire agreement by launching new strikes near the strait.
Traders are also awaiting the outcome of diplomatic efforts aimed at containing the crisis, amid warnings that any disruption to oil exports from the region could push prices even higher in the coming period.
Dollar rises as hopes for a peace deal fade
The U.S. dollar rose during Wednesday’s trading session as market hopes for a quick peace agreement faded amid escalating geopolitical tensions between the United States and Iran.
The dollar index, which measures the U.S. currency against a basket of major currencies, gained support from increased demand for safe-haven assets after concerns grew over a possible expansion of the conflict in the Middle East, particularly following the exchange of accusations between Washington and Tehran regarding violations of the ceasefire agreement.
Higher-risk currencies and several emerging market currencies also came under pressure, while investors turned to the U.S. dollar and Treasury bonds as safe havens amid the current uncertainty.
Analysts believe that ongoing geopolitical tensions could continue to support the dollar in the coming period, especially if the crisis impacts energy prices and global trade, while markets await any diplomatic developments that could help ease tensions.