Gold dropped on Thursday, erasing some of the previous session’s gains. The yellow metal is currently looking to hold above the bearish channel’s middle line to reclaim the daily pivot point at $4704 and then the resistance levels near $4820 and $4903. On the other hand, if the price falls below the aforesaid channel’s middle line, it may test support levels at $4557 and then $4473.
Financial markets are navigating a wave of heightened volatility on April 2, 2026, as geopolitical tensions and energy market disruptions reshape global sentiment. The escalation in rhetoric from Donald Trump, alongside growing risks surrounding Iran, has driven investors toward defensive positioning, reinforcing the dominance of safe-haven assets while weighing on risk appetite. These developments have created a tightly interconnected market environment, where movements in currencies, commodities, and equities are increasingly influenced by geopolitical headlines.
At the center of this shift, the U.S. dollar has regained strength, with the “Dollar surges, erasing some of recent sessions’ losses” narrative reflecting renewed demand for liquidity and safety. Simultaneously, energy markets have surged, as highlighted in “Brent crude prices surpass $100 a barrel as risks to global supply intensify,” with supply concerns linked to disruptions in key routes such as the Strait of Hormuz pushing oil prices sharply higher and fueling inflation fears.
Meanwhile, the geopolitical backdrop remains the key driver of uncertainty, underscored by Trump’s pledge to strike Iran “extremely hard” over the next few weeks.
Market Watch
Trump pledges to strike Iran “extremely hard” over next few weeks
Global geopolitical tensions escalated sharply after U.S. President Donald Trump announced that the United States would launch “extremely hard” strikes against Iran over the coming two to three weeks, signaling a potentially decisive phase in the ongoing conflict. The statement, delivered during a nationally televised address, underscored Washington’s intent to intensify military operations as it seeks to finalize its strategic objectives in the region.
Trump framed the upcoming escalation as the final push in a campaign he claimed had already significantly weakened Iran’s military capabilities, including its missile systems, naval forces, and nuclear infrastructure. While he suggested that the war was “nearing completion,” he simultaneously warned that the most forceful phase of the offensive was yet to come, raising concerns about further instability in the Middle East.
The announcement comes amid an already volatile regional backdrop, with ongoing disruptions to key energy routes such as the Strait of Hormuz—a critical artery for global oil shipments. The closure and militarization of this passage have heightened fears of supply shocks, pushing energy markets into a state of uncertainty. Analysts warn that any further escalation, particularly strikes targeting Iranian energy infrastructure, could significantly disrupt global oil flows and amplify inflationary pressures worldwide.
Oil surpasses $100 a barrel as risks to global supply intensify
Brent crude oil prices surged above the critical $100 per barrel on Thursday as escalating geopolitical tensions and deepening supply disruptions rattled global energy markets. The renewed rally reflects mounting fears among traders that the ongoing conflict in the Middle East—particularly involving Iran—could severely constrain global oil flows for an extended period.
Brent crude climbed more than 6% in a single session, trading near $107–$108 per barrel, while U.S. benchmark West Texas Intermediate (WTI) also advanced above $100. This sharp increase marks a continuation of one of the most aggressive oil price rallies in recent years, fueled by what analysts describe as a “geopolitical risk premium” being rapidly priced into energy markets.
At the center of the disruption is the ongoing crisis in the Strait of Hormuz, a strategic waterway through which roughly 20% of global oil supply typically flows. Recent military escalation and shipping disruptions have significantly reduced tanker traffic, tightening physical supply and intensifying fears of a prolonged bottleneck in global energy distribution
The dollar surges, erasing some of recent sessions’ losses
The U.S. dollar staged a strong comeback on Thursday, April 2, 2026, reversing a portion of its recent losses as escalating geopolitical tensions in the Middle East drove investors toward safe-haven assets. The rebound comes amid heightened uncertainty following renewed U.S. threats of intensified military action against Iran, a development that has rattled global financial markets and reignited volatility across currencies, commodities, and equities.
The dollar index, which measures the greenback against a basket of major currencies, rose by more than 0.5%, climbing back above the psychologically important 100 level. This marks a notable recovery after several sessions of weakness, during which the currency had been under pressure due to shifting expectations around U.S. monetary policy and global economic conditions.
The primary driver behind the dollar’s surge has been a sharp increase in risk aversion. Investors, faced with the prospect of prolonged conflict in the Middle East, have sought the relative safety and liquidity of U.S. assets. This flight to safety has historically benefited the dollar, reinforcing its role as the world’s dominant reserve currency and a key refuge during periods of global instability.
The latest gains follow statements by U.S. President Donald Trump signaling that military operations against Iran could intensify over the coming weeks. These remarks dampened earlier optimism about a potential de-escalation, prompting a broad sell-off in global equities and renewed demand for defensive assets.
Looking Ahead
Markets are awaiting U.S. jobless claims data, which will impact global gold prices.