Summary: Gold edges higher after hitting a two-week low, with bargain-hunting emerging Iran tensions persist as maritime incidents and US blockade continue Ceasefire extension tempers immediate escalation and oil shock risks Dollar direction remains key driver, competing with…
Summary: Gold edges higher after hitting a two-week low, with bargain-hunting emerging Iran tensions persist as maritime incidents and US blockade continue Ceasefire extension tempers immediate escalation and oil shock risks Dollar direction remains key driver, competing with safe-haven demand Prices consolidate below resistance, with downside levels in focus Gold prices edged (barely) higher on Wednesday, recovering modestly after falling to a two-week low in the prior session, as investors reassessed geopolitical risks and broader macro drivers. The rebound was largely attributed to bargain-hunting following the recent decline, rather than a decisive shift in sentiment.
Markets remain focused on developments surrounding the Iran conflict, which continues to shape both safe-haven demand and inflation expectations through its impact on energy markets. Tensions remain elevated. Iran has reportedly seized cargo vessels in the Strait of Hormuz, while the United States has maintained its maritime blockade on Iranian ports.
Despite an extension of the ceasefire, there has been little progress toward renewed negotiations, leaving uncertainty high and the risk backdrop unresolved. At the same time, the extension of the ceasefire has reduced the immediate risk of a sharp escalation in hostilities. This has eased concerns about a near-term surge in oil prices and the associated inflation shock.