Gold prices posted gains during Tuesday’s trading, supported by their consolidation above the daily pivot point at $4470. The yellow metal is currently poised to resume its upward march, targeting resistance levels at $4657 then $4759. On the other hand, if the price falls below the aforesaid pivot point, it may head to test support levels at $4320 then $4214.
Market Watch
Trump signals willingness to end Iran war
US President Donald Trump said that he is willing to end the war without re-opening the Strait of Hormuz. This announcement boosted European stocks on Tuesday, as investors found some reassurance in the prospect of de-escalation. However, the European index remains on track for its biggest monthly decline since 2020 amid supply chain disruptions. The pan-European STOXX 600 index rose 0.2% to 581.92 points at 07:08 GMT. The benchmark index, which fell 8.2% in March, is poised to break an eight-month winning streak and record its first quarterly decline in five months.
Brent crude oil heads for biggest monthly surge ever recorded
Brent crude is on track for its biggest monthly gain ever, fueled by escalating geopolitical tensions in the Middle East and concerns about global supply disruptions. Oil prices dipped slightly today but remained high, with Brent trading near $111 a barrel, after earlier exceeding $116-$117 in recent days. Throughout March, crude has seen record gains of nearly 55% to 60%, the highest on record, driven by the escalating conflict in the region and disruptions to vital supply chains such as the Strait of Hormuz. Markets are closely watching for any signs of de-escalation, as some political statements suggesting a possible end to the conflict have temporarily curbed oil’s gains, while uncertainty continues to dominate the market.
Powell: Fed will “wait and see” war’s impact on inflation
Federal Reserve Chair Jerome Powell said the U.S. central bank can wait to see how the Iran war affects the economy and inflation, noting that policymakers typically look through shocks such as those from higher oil prices. Powell noted that current monetary policy is “well positioned,” allowing policymakers time to evaluate incoming data before making any decisions on interest rates. He highlighted that the effects of the conflict—particularly through rising energy prices—remain difficult to quantify at this stage. Powell added that while the war could contribute to inflationary pressures, the Fed has not yet determined whether to view these effects as temporary or respond with policy action. He emphasized that the outlook remains unclear, requiring careful monitoring of economic developments.
Looking Ahead
Markets are awaiting U.S. consumer confidence at 14:00 GMT, which will impact global gold prices.