Gold rose slightly on Tuesday, after breaking the bearish channel’s lower line on the four-hour chart. The yellow metal is currently trading at the daily pivot point of $4335; if it manages to break above this level, it could retest resistance levels at $4372 and then $4404. On the downside, if the price falls below the aforesaid pivot point, it may test support levels near $4293 and then $4260.
Global markets remained focused on developments in the Middle East after Israel and Iran agreed to halt attacks on each other, easing immediate concerns over a broader regional conflict. The de-escalation helped calm investor fears, although uncertainty surrounding the durability of the truce continued to influence trading activity. Against this backdrop, the U.S. dollar hovered near a two-month high as investors maintained a preference for safe-haven assets and awaited key economic data, while oil prices declined as market participants assessed the implications of the ceasefire for energy supplies and geopolitical risk premiums.
Market Watch
Israel and Iran halt attacks on each other
Israel and Iran have halted their exchange of military attacks following days of escalating tensions that raised concerns about a broader conflict in the Middle East. The de-escalation comes after a period of heightened hostilities that drew international attention and increased uncertainty across global financial markets.
According to media reports, diplomatic efforts led by regional and international actors played a key role in containing the crisis and preventing a wider confrontation that could have threatened regional stability and disrupted global energy supplies. At the same time, sources indicated that both sides remain on alert, with continued warnings of retaliation should either party violate the current pause in hostilities.
Governments and investors worldwide are closely monitoring developments, as a sustained period of calm could help ease pressure on financial markets and commodity prices. However, any renewed escalation may quickly revive geopolitical concerns and increase volatility across global markets.
Dollar hovers near two-month high
The U.S. dollar remained close to a two-month high during today’s trading session, supported by a combination of economic and geopolitical factors that have strengthened demand for the currency as a safe-haven asset. Investors are also awaiting key U.S. economic data that could provide fresh signals regarding the future direction of Federal Reserve monetary policy.
Despite easing tensions in the Middle East following the halt in attacks between Israel and Iran, the dollar continued to benefit from expectations that U.S. interest rates may remain elevated for longer than previously anticipated. Higher U.S. Treasury yields have also provided additional support to the currency against most major peers.
Market analysts noted that investors remain cautious and are reluctant to take large positions ahead of upcoming inflation and labor market reports, which could significantly influence the Federal Reserve’s policy decisions in the coming months.
Oil falls as investors await clarity following Israel-Iran halt in attacks
Oil prices declined in early trading today after concerns over supply disruptions eased following the announcement that Israel and Iran had halted their exchange of attacks. The development prompted investors to reassess geopolitical risks that had previously supported crude prices during the recent escalation.
Crude oil had posted strong gains during the period of heightened tensions, as traders feared potential disruptions to shipping routes and energy supplies in the region. However, news of the ceasefire encouraged profit-taking and shifted market focus back toward fundamental factors, including global demand conditions and production levels among major oil-producing nations.
Analysts believe that markets still require greater clarity regarding the durability of the truce between the two countries. Any renewed tensions could quickly reignite concerns over energy supplies and provide fresh support for oil prices. Investors are also monitoring broader economic conditions and the impact of higher interest rates on global energy demand in the months ahead.