Gold prices rose slightly on Thursday, as they are currently poised to break the bearish channel’s middle line on the four-hour chart. If gold manages to break above the channel’s middle line, it could rise toward resistance levels of $4513 and then $4547. On the downside, if the price falls below the daily pivot point of $4462, it could test support levels near $4426, then $4397.
Global markets remained focused on geopolitical and economic developments as Israel and Lebanon agreed to implement a ceasefire, raising hopes for a reduction in regional tensions. Meanwhile, the U.S. Dollar Index climbed to its highest level in two months, supported by safe-haven demand and expectations that interest rates may remain elevated. Adding to the cautious optimism, U.S. President Donald Trump said that a deal with Iran could be reached by the end of this weekend, fueling speculation that diplomatic progress may help ease geopolitical risks and influence market sentiment in the days ahead.
Market Watch
Israel and Lebanon agree to implement a ceasefire.
Israel and Lebanon have announced an agreement to implement a ceasefire under U.S. mediation, in a move aimed at containing the ongoing military escalation along the Lebanese-Israeli border and creating conditions for the resumption of political and security negotiations between the two sides.
According to a joint statement issued following talks hosted in Washington, the agreement includes a cessation of hostilities, accompanied by the withdrawal of Hezbollah forces from areas south of the Litani River and the deployment of the Lebanese Armed Forces as the sole security authority in those areas. Both parties also expressed their willingness to continue negotiations in the coming weeks with the goal of reaching broader security and political arrangements.
The agreement comes after a series of previous truces and understandings that were repeatedly violated, raising questions about the ability of all parties to fully comply with the new terms, particularly amid wider regional tensions linked to ongoing conflicts in the Middle East.
Meanwhile, Israel’s defense minister stated that the Israeli military would continue to take any actions it deems necessary to address potential security threats, while Lebanese officials emphasized the importance of maintaining stability and reinforcing state authority in border regions.
Dollar index hits a two-month high
The U.S. Dollar Index rose during Thursday’s trading session, approaching its highest level in two months, supported by increased demand for the U.S. currency as a safe-haven asset amid ongoing geopolitical tensions in the Middle East and investor anticipation of key U.S. economic data.
The dollar’s gains were driven by growing expectations that the Federal Reserve may keep interest rates elevated for a longer period, following economic data indicating continued resilience in the U.S. labor market and inflation remaining above the central bank’s target.
Meanwhile, several major currencies weakened against the dollar, with the euro and the British pound coming under pressure due to uncertainty surrounding the global economic outlook. Investors also reduced risk exposure and shifted toward safer assets.
Market participants are closely watching upcoming U.S. economic releases, which could provide fresh signals regarding the future path of Federal Reserve monetary policy. Analysts expect currency markets to remain volatile in the near term as traders assess economic and geopolitical developments.
Recent regional tensions, along with developments surrounding the Israel-Lebanon ceasefire agreement, have contributed to a cautious market sentiment, further supporting demand for the U.S. dollar and keeping the Dollar Index near its highest level in two months.
Trump: Iran deal could be reached this weekend
U.S. President Donald Trump said that a deal with Iran could be reached by the end of this weekend, noting that ongoing negotiations between the two sides have made significant progress in recent days.
Speaking to reporters, Trump stated that the talks are moving in a positive direction and that Washington remains committed to securing an agreement that addresses outstanding security and nuclear-related issues with Tehran. He added that there is a genuine opportunity for a diplomatic breakthrough if all parties continue to demonstrate flexibility during the current negotiations.
The remarks come at a time when the region is closely watching the future of U.S.-Iran relations, particularly after weeks of political and military tensions that have raised concerns about broader instability in the Middle East.
Iranian authorities have not yet issued an official response to Trump’s comments. However, Iranian officials have previously expressed their willingness to continue negotiations, provided that Iran’s national interests are respected and sanctions are eased.
Analysts believe that any progress toward a new agreement between the United States and Iran could help reduce geopolitical risks and support stability in global energy and financial markets, which are closely monitoring developments in the negotiations between the two countries.