Gold rose slightly on Thursday, as it is currently attempting to hold above EMA 9 and the daily pivot point depicted at $4816 to retest resistance levels at $4846 and then $4901. On the downside, if the price fails to gain positive momentum, the price may decline below the aforesaid PP, targeting support levels of $4761 and then $4731.
Gold prices surged as investors grew optimistic about a potential end to the Middle East war, yet the dollar’s rebound from its lowest level since March 2 limited the gains.
Global markets are navigating a complex landscape shaped by geopolitical developments and mixed economic signals. Israel’s cabinet has discussed the possibility of a ceasefire in Lebanon, raising cautious hopes for easing regional tensions, while China’s economy has shown resilience, growing by 5% in the first quarter and surpassing expectations. Meanwhile, the U.S. dollar index has rebounded from its lowest level since March 2, reflecting shifting investor sentiment as markets continue to assess economic data and the outlook for monetary policy.
Market Watch
Israeli security cabinet discusses possible Lebanon ceasefire
Israel’s security cabinet convened on Thursday to deliberate a potential ceasefire arrangement with Lebanon, as cross-border tensions continue to raise concerns of a broader regional escalation. The high-level meeting comes amid intensified diplomatic efforts led by international mediators seeking to de-escalate hostilities along the northern frontier. According to officials familiar with the discussions, the cabinet reviewed several proposals aimed at halting ongoing exchanges of fire between Israeli forces and armed groups operating from southern Lebanon. While no final decision has been announced, sources indicated that there is cautious openness within the government toward a temporary truce if security guarantees are met. The talks follow weeks of intermittent clashes that have displaced civilians on both sides of the border and heightened fears of a wider confrontation. Israeli authorities have maintained that any ceasefire must include mechanisms to prevent rearmament and cross-border attacks, emphasizinnecessity ofed for long-term stability rather than a short-lived pause in fighting. Meanwhile, Lebanese officials have reiterated calls for an immediate cessation of hostilities, warning of the humanitarian and economic toll of continued violence. International actors, including the United Nations and key regional stakeholders, are actively engaging both parties to break a sustainable agreement. Market reactions remained cautious, with investors closely monitoring developments in the region. Analysts note that any progress toward a ceasefire could ease geopolitical tensions and support broader stability in global markets.
China’s economic grew by 5% in Q1, beating forecasts
China’s economy expanded by 5% in the first quarter of 2026, surpassing market expectations and signaling a stronger-than-anticipated start to the year. The growth figure exceeded analysts’ forecasts, which had projected a more modest pace amid ongoing global economic uncertainties and domestic structural challenges. The better-than-expected performance was supported by a combination of resilient industrial output, improved retail sales, and targeted government stimulus measures aimed at boosting consumption and investment. Infrastructure spending and policy support for key sectors also significantly sustained economic momentum. Despite the positive headline figure, economists caution that challenges remain. Weak external demand, a fragile property sector, and lingering concerns over local government debt continue to pose risks to sustained growth in the coming quarters. Chinese authorities have reiterated their commitment to maintaining stable economic expansion, with policymakers expected to introduce additional supportive measures if needed. The strong first-quarter data, however, provides some reassurance that the world’s second-largest economy is on a relatively steady footing at the start of 2026.
The dollar index rebounded from its lowest level since March 2
The U.S. dollar index rebounded on Thursday after hitting its lowest level since March 2, as investors reassessed recent economic data and shifting expectations around Federal Reserve policy. The recovery comes following several sessions of weakness driven by softer U.S. economic indicators and cautious market sentiment. Market participants appeared to take advantage of the dollar’s recent dip, with renewed demand emerging amid lingering global uncertainty. Analysts noted that while recent data has pointed to a gradual slowdown in the U.S. economy, the Federal Reserve is still expected to maintain a cautious approach toward interest rate adjustments, providing some underlying support to the currency. Profit-taking in major currency pairs, particularly against the euro and yen, also supported the dollar’s rebound after these currencies had gained in previous sessions. Meanwhile, investors continue to monitor geopolitical developments and global economic signals, which remain key drivers of currency movements. Despite the uptick, analysts warn that the dollar’s outlook remains uncertain in the near term, as markets weigh the balance between slowing economic momentum and the Fed’s policy trajectory. Further data releases in the coming days are expected to provide clearer direction for the currency.
Looking Ahead
Markets are currently awaiting the release of two key U.S. economic indicators—U.S. unemployment claims and U.S. industrial production—as investors look for further clarity on the strength of the labor market and the pace of economic activity. These data points are expected to give insight into underlying economic conditions and could play a significant role in shaping market sentiment and expectations regarding the Federal Reserve’s policy outlook.