Gold prices surged higher on Friday after successfully consolidating above the broken bullish channel’s upper line on the four-hour chart. The yellow metal is currently attempting to break the first resistance level at $4,300; if it succeeds, it could rise toward the second resistance level at $4,335. On the downside, if the price falls below the pivot point of $4,235, it could retreat toward support levels near $4,209 then $1,754.
Today’s top market developments highlight the close connection between geopolitics and the global economy. U.S. President Donald Trump expressed confidence that the war with Iran could end “very soon,” fueling hopes for easing regional tensions. At the same time, oil prices moved higher as investors weighed uncertainty surrounding plans to reopen the Strait of Hormuz, a critical route for global energy supplies. Meanwhile, the U.S. dollar remained on track for weekly gains, supported by expectations that the Federal Reserve will maintain higher interest rates and by continued demand for safe-haven assets amid an uncertain global outlook.
Market Watch
Trump: War with Iran Will End “Very Soon”
U.S. President DonaldTrump said he believes the war with Iran will end “very soon,” stressing that Tehran “cannot continue like this.” He made the remarks while speaking to reporters during a meeting in the Oval Office.
Trump stated that the United States has significant military capabilities and noted that American defense manufacturers are increasing the production of ammunition and missiles to strengthen the country’s military stockpiles amid ongoing military operations and regional tensions. He also expressed confidence that the conflict is nearing its end but did not provide a specific timeline.
His comments come as regional and international diplomatic efforts continue to reduce tensions, with ongoing discussions aimed at reaching understandings that could pave the way for ending the military confrontation.
Oil Rises Amid Concerns Over Plans to Reopen the Strait of Hormuz
Oil prices rose in Friday’s trading as market concerns grew over plans to reopen the Strait of Hormuz, amid continued uncertainty surrounding the framework for resuming navigation through one of the world’s most critical oil shipping routes.
Brent crude futures climbed 1.03% to $83.34 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.67% to $77.81 per barrel, following gains of more than $3 in the previous session. The increase came as investors closely monitored developments related to Iranian and Omani proposals to reopen the strait, which reportedly include restrictions and transit fees for certain vessels, raising concerns about potential disruptions to global energy supplies.
Analysts said uncertainty over the conditions for reopening the Strait of Hormuz, coupled with ongoing regional security tensions, is providing short-term support for oil prices. Around one-fifth of the world’s oil and liquefied natural gas trade passes through the strategic waterway, making any disruption a significant concern for global markets. Investors are also watching diplomatic efforts between the United States and Iran, which could have a direct impact on global energy flows.
U.S. Dollar Heads for Weekly Gain
The U.S. dollar was on track to post weekly gains against a basket of major currencies in Friday’s trading, supported by higher U.S. Treasury yields and investor anticipation of upcoming economic data that could shape the Federal Reserve’s monetary policy outlook.
The U.S. Dollar Index remained near its highest level in several weeks as markets continued to expect the Federal Reserve to keep interest rates elevated for a longer period. This outlook boosted demand for the greenback, while ongoing geopolitical uncertainties and cautious market sentiment further strengthened the dollar’s appeal as a safe-haven asset.
Meanwhile, other major currencies came under pressure. The euro and the British pound weakened against the U.S. dollar, while the Japanese yen traded relatively steady as investors monitored developments in global bond markets and policy signals from the Bank of Japan.
Analysts expect the dollar’s performance in the coming weeks to remain closely tied to upcoming U.S. inflation and labor market data, as well as any new guidance from Federal Reserve officials regarding the timing of potential interest rate cuts.
Looking Ahead
Markets are closely awaiting the release of the U.S. Non-Farm Payrolls (NFP) report, one of the most closely watched indicators of the health of the U.S. labor market. Investors will be looking for signals on employment growth, wage trends, and the unemployment rate, as the data could significantly influence expectations for the Federal Reserve’s next monetary policy decisions. A stronger-than-expected report may reinforce the case for keeping interest rates higher for longer, supporting the U.S. dollar while weighing on gold and equities. Conversely, weaker labor market data could strengthen expectations for future rate cuts, leading to increased volatility across global financial markets.