Gold slipped on Tuesday, as it remained below the daily pivot point of $4677. The yellow metal is currently trading at the first support level of $4622; if it breaks below this level, the decline could extend toward the second support level at $4577. On the upside, if the price rises above the aforesaid pivot point, it could retest resistance levels at $4734 and then $4782.

With geopolitical tensions still weighing on global markets, investors are closely watching three major developments this week: U.S. President Donald Trump’s dissatisfaction with Iran’s latest proposal to end the war, which has reduced hopes for a quick diplomatic breakthrough and raised concerns over energy supplies; the U.S. Federal Reserve’s widely expected decision to keep interest rates unchanged on Wednesday as policymakers assess inflation risks and economic uncertainty; and oil prices continuing to hold onto their recent gains, supported by fears of supply disruptions and the ongoing instability surrounding the Middle East and global shipping routes.

Market Watch

Trump not happy with latest Iran proposal to end the war, US official says

U.S. President Donald Trump is unhappy with the latest Iranian proposal on resolving the two-month war, a U.S. official said, dampening hopes for a resolution to the conflict that has disrupted energy supplies, ‌fueled inflation, and killed thousands.

Iran’s latest proposal would set aside discussion of Iran’s nuclear program until the war is ended and disputes over shipping from the Gulf are resolved.

That is unlikely to satisfy the U.S., which says nuclear issues must be dealt with from the outset, and Trump was unhappy with Iran’s proposal for that reason, a U.S. official briefed on the president’s Monday meeting with his advisers said, speaking on condition of anonymity.

The Fed is expected to hold rates steady on Wednesday

Federal Reserve policymakers will gather in Washington this week in what may be Jerome Powell’s last meeting as head of the U.S. central bank, with energy prices still elevated and the Iran war at a standstill and likely to prolong uncertainty about the economic and monetary policy outlook.

A May 15 ​endpoint for Powell’s eight years at the Fed’s helm now appears more likely after a major obstacle to the U.S. Senate’s confirmation of his appointed successor, Kevin Warsh, was removed on Friday. As a final act, Powell ‌will likely oversee on Wednesday another vote by the central bank’s policy-setting Federal Open Market Committee to hold its benchmark overnight interest rate steady in the 3.50%-3.75% range, where it has been since December.

Oil prices hold onto their gains amid geopolitical uncertainty

Oil prices maintained their gains during Tuesday’s trading, as global markets continued to face uncertainty driven by escalating geopolitical tensions in several key regions, along with investors closely monitoring the outcomes of international talks regarding the Iranian file and their potential impact on global supplies.

Brent crude remained stable near its recent elevated levels, while West Texas Intermediate crude held on to its positive trading range, supported by concerns over possible supply disruptions if tensions in the Middle East escalate further, especially with continued attention on the future of navigation through strategic maritime routes such as the Strait of Hormuz.

Markets are closely watching developments in U.S.-Iran relations, as negotiations remain unresolved, increasing caution among traders regarding the possibility of additional sanctions or disruptions to oil exports from the region, which directly affects price movements.

At the same time, expectations of global demand, particularly from China and India, helped support prices amid signs of improving industrial activity and increased fuel consumption in the coming period, despite ongoing concerns related to the pace of global economic growth and U.S. interest rates.

Analysts believe that continued geopolitical uncertainty will keep oil prices supported in the near term, with investors remaining alert to any sudden developments that could affect the balance of supply and demand in global markets.

Looking Ahead

Markets are closely awaiting today’s release of U.S. Consumer Confidence data, as investors seek further signals regarding the strength of household spending and the overall resilience of the American economy. This indicator is considered a key measure of consumer sentiment and future spending intentions, which play a major role in driving economic growth. A stronger-than-expected reading could reinforce expectations that the U.S. economy remains on solid footing, while weaker data may raise concerns about slowing demand and increase speculation regarding future monetary policy decisions by the Federal Reserve.