Gold prices fell slightly on Thursday and are currently testing the bearish channel’s upper line on the four-hour timeframe. If the yellow metal stabilizes above the channel’s upper line, it may resume its climb toward resistance levels at $4,172 then $4,210. On the downside, if the price falls below the daily pivot point of $4,088, it may test support levels near $4,038 then $3,992.
Global financial markets remained focused on escalating geopolitical tensions in the Middle East on Thursday after the United States launched its twelfth consecutive night of airstrikes against Iran. The prolonged conflict supported safe-haven demand, helping the U.S. dollar hold steady while keeping Brent crude near its highest level in six weeks amid concerns over potential disruptions to global energy supplies. Investors are also closely monitoring upcoming U.S. economic data for further guidance on the Federal Reserve’s monetary policy outlook and its implications for global financial markets.
Market Watch
US Launches Twelfth Consecutive Night of Strikes on Iran
The United States launched its twelfth consecutive night of airstrikes against targets inside Iran early Thursday, as part of an ongoing military campaign that Washington says is aimed at degrading Iran’s military capabilities and safeguarding international shipping through the Strait of Hormuz, amid escalating tensions in the Middle East.
According to the U.S. Central Command (CENTCOM), the latest wave of strikes targeted missile and drone storage facilities, air defense systems, coastal surveillance sites, and other military infrastructure linked to Iran’s offensive capabilities. The operation is part of a series of sustained military actions that began 12 days ago, as tensions between Washington and Tehran continue to intensify.
Iranian authorities, meanwhile, vowed to respond to any further escalation, describing the U.S. strikes as a violation of the country’s sovereignty. Tehran warned that the continuation of military operations could broaden the conflict across the region and pose risks to maritime security and global energy supplies.
The latest strikes coincided with heightened tensions across key maritime routes, particularly the Strait of Hormuz and the Red Sea, fueling concerns over potential disruptions to global oil supplies. Diplomatic efforts to de-escalate the crisis remain underway, although no significant breakthrough has been achieved.
Global investors continue to monitor developments closely, amid growing concerns that the conflict could have far-reaching implications for energy prices and financial markets, while prospects for a political resolution remain limited as military operations persist.
Brent Crude Holds Near Six-Week High
Brent crude prices held near their highest level in six weeks during Thursday’s trading session, supported by ongoing geopolitical tensions in the Middle East following the twelfth consecutive night of U.S. airstrikes on targets inside Iran, which fueled concerns over potential disruptions to global oil supplies.
Brent remained close to its strongest level since early June as investors continued to monitor military developments in the region, particularly around the Strait of Hormuz, through which roughly one-fifth of the world’s oil supply passes. Escalating geopolitical risks have kept a risk premium embedded in crude prices despite lingering concerns over the global demand outlook.
Oil prices also received support from a decline in U.S. crude inventories, according to the latest data released by the U.S. Energy Information Administration (EIA), reinforcing expectations of robust fuel demand during the peak summer driving season in the United States.
However, expectations of increased supply from the OPEC+ alliance, along with persistent uncertainty surrounding the pace of global economic growth, limited further gains in oil prices as markets continued to assess the balance between supply and demand.
Market participants remain focused on developments in the Middle East, as well as upcoming U.S. economic data, to evaluate their potential impact on global energy demand and the near-term direction of crude oil prices.
Dollar Steadies Amid Escalating Geopolitical Tensions
The U.S. dollar traded largely unchanged on Thursday as investors continued to favor safe-haven assets amid escalating geopolitical tensions in the Middle East following the twelfth consecutive night of U.S. airstrikes on targets inside Iran. Meanwhile, market participants remained focused on upcoming U.S. economic data for further clues on the Federal Reserve’s monetary policy outlook.
The U.S. Dollar Index, which measures the greenback against a basket of six major currencies, held near its highest levels in recent weeks, supported by increased demand for the dollar as a safe-haven asset amid persistent geopolitical uncertainty.
At the same time, investors are awaiting key U.S. economic releases, including indicators on economic activity and the labor market, which could influence expectations for the future path of U.S. interest rates over the coming months.
Despite support from safe-haven demand, the dollar’s gains remained limited as markets looked for fresh signals from Federal Reserve officials regarding the timing and magnitude of potential interest rate cuts. Investors also continued to monitor developments in the energy markets, given their potential impact on global inflation trends.
Market participants remain closely focused on geopolitical developments in the Middle East, as they continue to shape global risk sentiment and are expected to keep currency markets volatile in the near term.
Looking Ahead
Markets are awaiting the release of the latest U.S. Initial Jobless Claims data, which is expected to provide fresh insight into the strength of the labor market and its potential impact on the Federal Reserve’s monetary policy outlook. Investors will closely assess the figures for signs of easing or continued resilience in employment conditions, as the data could influence expectations for the timing and pace of future interest rate decisions. A stronger-than-expected labor market may support the U.S. dollar and Treasury yields, while weaker readings could reinforce expectations of monetary policy easing in the coming months.