Gold prices bounced in early trading on Wednesday, erasing some of the notable losses recorded during the previous session. The yellow metal is currently trading near the daily pivot point of $5210, where stability beneath it may drive prices towards $5081 then $5020. Conversely, if the price rises above the aforesaid pivot point, it may reclaim resistance levels of $5281 then $5340.
Gold prices rose on Wednesday, rebounding from a more than one-week low hit in the previous session, as a widening Middle East conflict sent global markets tumbling and supported safe-haven demand.
Market Watch
Trump’s decision to secure oil tankers
Trump has said that the U.S. Navy could begin escorting oil tankers through the Strait of Hormuz if necessary, adding he had ordered the U.S. International Development Finance Corporation to provide political risk insurance and financial guarantees for maritime trade in the Gulf.
Trump’s statement came after Iran targeted tankers in the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas flows. Traffic through the Strait remains effectively closed.
Brent crude surpasses $83 per barrel
Brent crude climbed above $80 a barrel on Wednesday as supply disruptions from the escalating U.S.–Israeli conflict with Iran rattled markets, but the pace of the gains eased after President Trump signaled that the U.S. Navy could escort vessels through the Strait of Hormuz to help keep oil flowing.
Dollar stabilizes near three-month high
The dollar stabilized near its highest level in three months during Wednesday trading, supported by increased demand for it as a safe haven, amid escalating tensions in the Middle East and uncertainty dominating global markets.
Also, the dollar is looking to extend its gains for the third consecutive session, after breaking through the crucial level of 99.00, confirming the dominance of the uptrend in the market.
Looking Ahead
Markets are awaiting U.S. ADP Nonfarm Employment Change at 13:15 GMT today, with economists predicting a job gain of 50,000 jobs in February, compared to 22,000 new jobs the previous month.