Gold resumed its notable decline on Wednesday, as it continues to face downward pressure due to a loss of positive momentum. The yellow metal is currently fluctuating near the first support level at $4,057, if it breaks below this level, it may extend its losses, heading toward the second support level at $3,998. On the upside, if the price rises above the bearish channel’s middle line, it may retest resistance levels near $4,183 then $4,236.
The financial markets remained focused on a series of major developments on Wednesday, as tensions emerged between the United States and Iran over key provisions of a proposed peace agreement, raising uncertainty about the prospects for a lasting settlement between the two countries. At the same time, investors increased their bets that the Federal Reserve could deliver three interest rate hikes in 2026 amid persistent inflation concerns and resilient economic data. Meanwhile, Oman and Iran continued discussions on maritime navigation management and security coordination in the Strait of Hormuz, underscoring ongoing regional efforts to safeguard one of the world’s most critical trade and energy routes.
Market Watch
U.S., Iran at odds over peace deal terms
Differences between the United States and Iran have intensified over several key provisions of the proposed agreement aimed at transforming the current ceasefire into a permanent peace accord, despite ongoing negotiations between the two sides during the 60-day de-escalation period.
The main points of contention center on Iran’s nuclear program. Washington maintains that the agreement includes comprehensive international inspections of Iranian nuclear facilities, while Tehran denies that any such commitment is part of the current understandings. Iran also continues to reject the inclusion of its missile program in the negotiations, arguing that it is an essential component of its national defense and therefore non-negotiable.
Other disputed issues include the mechanism for utilizing Iranian frozen assets that are expected to be released, the terms of U.S. sanctions relief, as well as the future of navigation through the Strait of Hormuz and the related security arrangements.
At the same time, U.S. officials have warned that failure to reach a final understanding on these matters could hinder efforts to transform the current truce into a lasting peace agreement. Tehran, meanwhile, insists that it will not accept any conditions that undermine its sovereignty or defensive capabilities.
These developments come as regional and international mediators continue their efforts to bridge the gap between the two sides, amid hopes that the ongoing negotiations will lead to a final agreement capable of ending the tensions that have gripped the region in recent months.
Markets bet on three rate hikes in 2026
The financial markets have strengthened their bets on further tightening of U.S. monetary policy in the coming months, with growing expectations that the Federal Reserve will raise interest rates three times in 2026 amid persistent inflationary pressures and resilient U.S. economic data.
These expectations emerged following the Federal Reserve’s latest policy meeting, where policymakers left interest rates unchanged but adopted a more hawkish tone regarding the future path of monetary policy. Updated economic projections also showed higher inflation forecasts compared with previous estimates, prompting investors to reprise the likelihood of additional rate hikes in the months ahead.
Market data and futures contracts indicate increasing expectations for further interest rate increases before the end of the year. At the same time, several major financial institutions anticipate that the Fed could implement three separate 25-basis-point rate hikes if inflation remains above its target level.
The shift in expectations has pushed U.S. Treasury yields higher and provided support for the U.S. dollar, while gold prices and other interest rate-sensitive assets have come under selling pressure as investors increase their bets on continued monetary tightening.
Investors are now closely monitoring upcoming economic data, particularly inflation and labor market indicators, for further signals that could either confirm or challenge the scenario of three Federal Reserve rate hikes during 2026.
Oman, Iran to continue talks on administering navigation
Oman and Iran have continued their consultations on maritime navigation management and the enhancement of security across key waterways in the Gulf region, as part of efforts aimed at maintaining the stability of international trade flows and ensuring the smooth passage of vessels through the Strait of Hormuz.
Reports indicated that the two sides discussed a number of issues related to maritime coordination and the exchange of information concerning vessel movements, in addition to ways of strengthening joint cooperation to reduce risks that could affect maritime security in the region.
These talks come at a time when the Strait of Hormuz is receiving increased international attention due to its strategic importance, as a significant portion of global oil and gas exports passes through the waterway. The discussions also coincide with regional efforts to preserve de-escalation and promote stability following the geopolitical developments witnessed in the region in recent months.
Officials from both sides emphasized the importance of maintaining dialogue channels and maritime coordination in a manner that supports the security of sea lanes, protects the economic interests of Gulf states, and ensures the safety of global trade flows.
Observers believe that continued cooperation between Muscat and Tehran on this issue could help reduce tensions and strengthen confidence among regional parties, particularly amid ongoing diplomatic efforts to preserve stability and maritime security in the region.