Gold soared on Wednesday, recouping some of the losses recorded in previous sessions. The yellow metal is currently looking to break above the first resistance level at $4610, if it succeeds, it could extend its gains toward the second resistance level at $4682. On the downside, if the price falls below the daily pivot point at $4495, it is likely to test support levels of $4387 then $4323.
Gold extended gains on Wednesday, supported by a weaker dollar and a decline in oil prices that eased concerns over inflation and higher global interest rates, while mixed signals from the U.S. and Iran regarding an end to the war kept investors cautious.
Market Watch
US unveils plan to end war in Iran
President Donald Trump said the U.S. and Iran are “in negotiations right now” and suggested Tehran is eager to make a peace deal, even as the Islamic Republic has denied it is in direct talks with Washington.
“They’re talking to us, and they’re talking sense,” Trump said when asked to further explain his pivot.
Later Tuesday, The New York Times, citing two unnamed officials, reported that the U.S. has sent Iran a 15-point plan to end the war.
Iran: ‘non-hostile’ ships can transit Strait of Hormuz
Iran has told the United Nations Security Council and the International Maritime Organization that “non-hostile vessels” may transit the Strait of Hormuz if they coordinate with Iranian authorities.
The U.S.-Israeli war against Iran has all but halted shipments of about one-fifth of the world’s oil and liquefied natural gas through the strait, causing oil supply disruption.
Brent prices drop on prospect of Middle East ceasefire
Brent prices dropped on Wednesday amid expectations of a possible ceasefire that could ease supply disruptions in the Middle East, following reports of diplomatic efforts to end the conflict.
Also, Brent crude prices are on track to post losses for the third consecutive session, trading below the key $100-per-barrel level.
Looking Ahead
Markets are on edge ahead of speeches from U.S. Federal Reserve officials later today, with investors watching closely for any signals on interest rates that could move gold prices.