Gold edged lower on Friday as it remained below the daily pivot point of $4212, erasing some of the previous session’s gains. If the yellow metal continues to trade below this pivot point, the decline could extend toward support levels at $4148 then $4098. On the upside, if the price gains positive momentum, it could test resistance levels near $4267 then $4313.
Global markets reacted to signs of easing tensions in the Middle East after President Trump stated that the United States and Iran could be close to signing a peace agreement. The prospect of a diplomatic breakthrough weighed on oil prices following the cancellation of planned U.S. strikes on Iran, while the U.S. dollar retreated after reaching a two-month high as investors reduced demand for safe-haven assets and shifted toward riskier investments.
Market Watch
Trump: The United States and Iran Could Sign a Peace Agreement Soon
U.S. President Donald Trump stated that the United States and Iran could be close to signing a peace agreement in the coming days, indicating that negotiations have reached their final stages and that a deal could potentially be signed over the weekend in Europe.
Trump said the proposed agreement aims to ease military tensions between the two countries and pave the way for further discussions regarding Iran’s nuclear program. He emphasized that one of the key provisions of the deal would be ensuring that Iran does not develop nuclear weapons in the future. Trump also noted that the agreement could contribute to the full reopening of the Strait of Hormuz to commercial shipping, potentially easing pressure on global energy markets.
Meanwhile, Iranian officials stated that negotiations are still ongoing and that no final decision has been made regarding the agreement. Tehran stressed that several outstanding issues remain under discussion and require further negotiations before a final settlement can be reached.
The comments come as regional and international diplomatic efforts continue to contain tensions in the Middle East. Market participants are closely monitoring developments, hoping that a potential agreement between Washington and Tehran could support regional stability and reduce concerns over global oil supplies.
Oil Falls After Trump Cancels Planned Strikes on Iran
Global oil prices declined during Friday’s trading session after U.S. President Donald Trump announced the cancellation of planned military strikes against Iran, easing market concerns over escalating tensions in the Middle East and the potential disruption of regional oil supplies.
Brent crude fell by more than 2% to trade near $88 per barrel, while West Texas Intermediate (WTI) crude dropped below $86 per barrel, extending losses from the previous session. The decline came after Trump indicated progress in discussions with Iran and suggested that a peace agreement could be reached in the near future.
Oil markets had previously incorporated a significant geopolitical risk premium amid recent exchanges between the United States and Iran and concerns over shipping activity through the Strait of Hormuz, a key route for nearly one-fifth of global oil supplies. However, Washington’s decision to call off the planned military action prompted investors to reassess geopolitical risks, putting downward pressure on crude prices.
Despite the current pullback, markets remain focused on ongoing negotiations between the two countries. Iranian officials have stated that talks are continuing and that no final agreement has been reached so far, a situation that could keep volatility elevated across energy markets in the coming days.
Analysts believe that further diplomatic progress between Washington and Tehran could help ease concerns over global oil supplies, while any renewed military tensions may once again drive crude prices higher.
Dollar Falls After Touching a Two-Month High
The U.S. dollar declined during Friday’s trading session after reaching its highest level in two months in the previous session, as investors took profits and monitored developments in U.S.-Iran negotiations, while also awaiting upcoming U.S. economic data releases.
The U.S. Dollar Index, which measures the greenback against a basket of six major currencies, edged lower after benefiting in recent days from increased demand for safe-haven assets amid geopolitical tensions in the Middle East. However, easing concerns over a potential military escalation between Washington and Tehran prompted some investors to reduce their long-dollar positions.
Major currencies gained modest support against the dollar, with the euro and the British pound advancing, while the Japanese yen traded relatively steady as global markets remained cautious. The move followed comments from U.S. President Donald Trump suggesting that a peace agreement with Iran could be reached soon, improving overall market risk sentiment.
Investors are also closely watching the outlook for U.S. monetary policy. Recent economic data pointed to a moderation in inflationary pressures, reinforcing expectations that the Federal Reserve could lower interest rates in the coming months.
Analysts believe that the dollar’s near-term direction will continue to depend on geopolitical developments, incoming U.S. economic data, and comments from Federal Reserve officials regarding the future path of interest rates.