Gold prices posted significant gains on Wednesday after breaking above the minor descending channel’s upper line on the four-hour chart. The yellow metal is currently trading near the first resistance level at $4652; if it settles above this level, it may continue to rise toward the next resistance level at $4690. On the downside, if the price falls below the daily pivot point of $4618, it may test support levels at $4585 and then $4548.
Global markets are witnessing cautious anticipation amid rapidly evolving geopolitical developments, as U.S. President Donald Trump announced a halt to efforts to escort ships through the Strait of Hormuz, while also stating that “great progress” has been made toward reaching a deal with Iran. These developments have fueled investor optimism over a potential de-escalation, which was quickly reflected in the markets, with the U.S. dollar easing as hopes for a U.S.-Iran agreement continue to grow, boosting demand for riskier assets.
Market Watch
Trump pauses effort to escort ships in Strait of Hormuz
U.S. President Donald Trump announced a temporary pause in the American operation aimed at escorting commercial ships through the Strait of Hormuz, marking a significant shift in Washington’s approach amid ongoing tensions with Iran.
The operation, known as “Project Freedom,” had been launched to secure safe passage for vessels trapped in the strategic waterway, which handles around 20% of global oil shipments. However, Trump said the mission would be halted briefly due to “great progress” in negotiations toward a comprehensive agreement with Iran.
Despite the pause, U.S. officials confirmed that the broader blockade and military pressure on Iran would remain in place, signaling that the move is intended to support diplomacy without fully stepping back from the conflict.
The Strait of Hormuz has been largely disrupted since the escalation of hostilities, with hundreds of vessels affected and global energy markets experiencing volatility because of the crisis.
The decision to pause the escort mission also comes amid international calls to allow more time for negotiations, with several countries urging de-escalation and a diplomatic resolution.
Trump says great progress made towards deal with Iran
U.S. President Donald Trump said today that “great progress” has been made toward reaching a comprehensive agreement with Iran, signaling a potential breakthrough in ongoing efforts to end the conflict between the two sides.
Trump’s remarks came amid continued diplomatic contacts, as he expressed optimism about the possibility of finalizing a deal soon. He indicated that recent negotiations have moved forward significantly, raising hopes for a broader settlement that could ease geopolitical tensions and stabilize global markets.
The statement also coincides with Washington’s decision to pause certain military operations in the Strait of Hormuz, a move the U.S. administration linked directly to progress in talks with Tehran.
Meanwhile, Iran has signaled openness to a “fair and comprehensive agreement,” although officials have not confirmed the extent of progress described by Trump.
Analysts say that Trump’s comments have already impacted global markets, with oil prices declining and equities rising on optimism that a potential deal could reduce disruptions in energy supply and lower geopolitical risks.
Despite the positive tone, uncertainty remains over the final terms of any agreement, as negotiations continue through indirect channels and key issues—such as security arrangements and nuclear restrictions—are yet to be fully resolved.
Dollar eases as US-Iran deal hopes to grow
The U.S. dollar weakened on Wednesday as optimism grew over a potential agreement between the United States and Iran, reducing demand for the currency as a safe-haven asset.
The decline came after U.S. President Donald Trump signaled “great progress” in negotiations with Iran and announced a pause in certain military operations in the region, reinforcing expectations of a possible de-escalation.
As geopolitical tensions appeared to ease, investors shifted toward riskier assets, pushing the dollar lower against major currencies. The Japanese yen strengthened notably, adding further pressure on the dollar, while the euro and British pound also posted gains.
Meanwhile, oil prices declined as fears of supply disruptions through the Strait of Hormuz began to subside, contributing to the dollar’s weakness and supporting global equity markets.
Analysts noted that easing geopolitical risks and improving market sentiment have reduced the appeal of the dollar, with investors now focusing on upcoming U.S. economic data—particularly the non-farm payrolls report—for further direction on Federal Reserve policy.
At the same time, rising gold prices highlighted the shift in market positioning, as investors balanced optimism over diplomacy with ongoing uncertainty in global markets.
Looking Ahead
Markets are awaiting the release of the U.S. ADP Nonfarm Employment Change report, a key indicator of private-sector job growth that often provides early signals about the strength of the labor market ahead of the official government data. Investors will be closely watching the figures for clues on hiring trends and overall economic momentum, as stronger-than-expected data could reinforce expectations of a resilient economy, while weaker readings may raise concerns about a potential slowdown. The outcome is also likely to influence expectations for Federal Reserve policy, particularly regarding the future path of interest rates.