Gold prices stabilized on Friday, as they continue to await further positive momentum to regain their upward trend in the near term. If the yellow metal fails to find positive support, it may continue its downward trend, which could extend toward support levels at $4476 then $4434. On the other hand, if the price breaks above the daily pivot point of $4543, it could test resistance levels near $4591 then $4641.
Markets are closely monitoring rising geopolitical and economic developments as tensions between the United States and Iran over uranium enrichment continue to fuel uncertainty across global markets. At the same time, investors are awaiting the swearing-in of Kevin Warsh as the new Federal Reserve chair by Donald Trump, while the U.S. dollar strengthened following stronger-than-expected U.S. economic data that reinforced expectations of prolonged higher interest rates.
Market Watch
U.S.-Iran tensions over uranium
Tensions between the United States and Iran escalated after Tehran reaffirmed that its enriched uranium stockpile would remain inside the country, rejecting key U.S. demands during ongoing nuclear negotiations. Iranian Supreme Leader Mojtaba Khamenei reportedly ordered officials not to transfer highly enriched uranium abroad, hardening Iran’s position amid renewed diplomatic talks and regional security concerns.
U.S. President Donald Trump responded by warning that Washington would ensure Iran does not retain uranium that could potentially be used for nuclear weapons production. Trump stated that the United States would “retrieve” and likely destroy the material if necessary, signaling a tougher stance following months of fragile negotiations and military tensions in the Middle East.
The dispute centers on Iran’s stockpile of uranium enriched up to 60% purity, a level close to weapons-grade material. According to the International Atomic Energy Agency, inspectors have faced difficulties verifying the status of Iran’s nuclear activities after Tehran limited access to several facilities damaged during previous strikes.
Diplomatic efforts led by Oman and supported by international mediators have attempted to bridge differences between both sides. Proposed solutions reportedly include diluting Iran’s enriched uranium or placing the stockpile under international supervision. However, major disagreements over enrichment limits, sanctions relief, and regional security issues continue to complicate prospects for a final agreement.
Trump to swear in Warsh as Fed chair
U.S. President Donald Trump is set to officially swear in Kevin Warsh as the new Chair of the Federal Reserve during a ceremony at the White House on Friday, marking a rare presidential involvement in the installation of a Fed chief.
Warsh, a former Federal Reserve governor who served between 2006 and 2011, was confirmed by the U.S. Senate earlier this month in a narrow 54-45 vote. He succeeds Jerome Powell, whose term as Fed chair officially expired last week, although Powell is expected to remain on the Board of Governors until 2028.
The appointment comes at a challenging time for the U.S. economy as policymakers confront persistent inflation pressures linked to geopolitical tensions in the Middle East and the economic impact of trade policies. Investors are closely watching whether Warsh will support lower interest rates, a policy strongly favored by Trump, or maintain the Federal Reserve’s traditionally independent approach to monetary policy.
Warsh has previously advocated reducing the Federal Reserve’s balance sheet and reforming the central bank’s communication strategy. During his confirmation hearings, he pledged to preserve the Fed’s independence despite criticism from some lawmakers over his close relationship with Trump.
Financial markets are expected to focus on Warsh’s first policy meeting in June for signals about the future direction of interest rates and inflation management under the new Fed leadership.
Dollar rises on strong U.S. data
The U.S. dollar strengthened against major global currencies on Friday after a series of stronger-than-expected economic data reinforced expectations that the Federal Reserve may keep interest rates elevated for a longer period. Investors reacted positively to robust manufacturing activity, resilient labor market figures, and improved business sentiment across the United States.
The U.S. Dollar Index, which measures the greenback against a basket of major currencies, climbed during early trading sessions as traders reduced expectations for near-term interest rate cuts. Analysts said the latest economic readings signaled continued resilience in the U.S. economy despite ongoing geopolitical tensions and uncertainty surrounding global trade.
Fresh data released on Thursday showed U.S. manufacturing activity expanded at a faster pace than expected in May, while weekly jobless claims remained near historically low levels. The figures strengthened market confidence that consumer spending and industrial activity remain solid despite persistent inflationary pressures.
Meanwhile, U.S. Treasury yields moved higher as investors adjusted expectations for future Federal Reserve policy decisions. Market participants are now closely watching upcoming speeches from Federal Reserve officials and the release of the FOMC meeting minutes for further clues on the interest rate outlook.
The stronger dollar pressured major currencies, including the euro and Japanese yen, while gold prices eased as higher yields reduced the appeal of non-yielding assets. Currency strategists noted that continued economic strength in the United States could support the dollar in the near term, especially if inflation remains above the Federal Reserve’s target.