Gold rose on Tuesday as it held above the bullish trend line on the four-hour timeframe. The yellow metal is currently trading near the daily pivot point at $5169, looking to break above it to touch $5245 then $5304. Conversely, if the price settles below the aforesaid pivot point, it may test support levels of $5070 then $5007.
Gold prices rose on Tuesday, supported by a weaker U.S. dollar and easing energy costs after U.S. President Donald Trump suggested that the war in the Middle East could end soon.
Market Watch
Dollar slips as conflict fears ease
The dollar fell slightly on Tuesday to trade near a three-month high hit last week but trimmed its gains after Trump said the war “is very complete,” easing investor concerns about a prolonged conflict that could disrupt global energy supplies and weigh on economic growth.
Also, the dollar is moving within a sideways range, as it currently awaits further positive momentum to continue its rise in the near term.
Trump hints at war’s end
U.S. President Donald Trump hinted that the war in the Middle East could be over soon – though not this week, he specified – even as hardliners pledged loyalty to their new Supreme Leader Mojtaba Khamenei in a sign that they are not ready to back down any time soon.
But just a few minutes later, in remarks made during a news conference in Doral, Fla., Trump suggested things could get worse in the region, as he threatened to increase attacks if Iran made any attempt to disrupt the world’s oil supply.
Brent remains steady at around $90 per barrel
Brent crude surged 4% on Tuesday to around $90 a barrel, following a mid-2022 peak in the previous session, as rising tensions in Iran tightened global energy supplies and weighed on hopes for interest rate cuts.
In the same vein, the expanding U.S.-Israeli war with Iran led some major Middle Eastern oil producers to cut supplies on fears of prolonged disruption to shipping through the Strait of Hormuz choke point.
Looking Ahead
At 14:00 GMT, the U.S. will release existing home sales data, but markets remain focused on the latest developments between U.S. and Iran.