The weekend headlines continue to rock markets as another gap-up in oil drove reverberations across the macro space. Stocks sold off and the USD rallied, at least initially, as tensions flared from the Strait of Hormuz.
Market Update: WTI drops 10% to ~ $90 and Brent falls below $100 as renewed US-Iran talks cool market tensions. Gold rebounds to the $4,400 momentum level following a severe 25% correction driven by inflation fears.
Gold bounces from the 200-day EMA on Monday, with a bit of a relief rally.
Gold (XAU/USD) has plummeted to a four-month low, recording its worst week in 43 years, as macro factors, specifically the Federal Reserve's shift away from 2026 rate cuts dominate geopolitical influences. Technicals signal a severe bearish breakdown below the $4,500 support, compounded by persistent ETF outflows.
Gold market weakens as Treasury yields surge and rate cuts get pushed back. Gold price prediction stays bearish with rallies likely to be sold near resistance.
Gold: Medium-term risks from CTA flows – TD Securities
Gold rebounds from year-to-date lows as Trump delays Iran energy strikes
Gold rebounded on a TACO-driven de-escalation after testing key support near 4,000, as a sudden shift in US policy stance halted the sharp selloff. Prices had earlier dropped to 4,098.54, putting the psychological 4,000 level at risk before recovering on headlines pointing to a temporary pause in escalation.
The US dollar quickly recovered from the blow it took from central banks. The greenback recouped most of its losses against the majors.
Gold: Near term capped, medium term constructive – OCBC
Gold: Technical support tested as liquidation continues – MUFG
Gold and the Dow Jones, alongside precious metals and US indices, are facing steep drawdown risks under hawkish central bank policies and weakening market sentiment as the Middle East conflict escalates further. Such drawdowns often offer long-term dip buying opportunities, with current market risks pointing back toward 2024 highs.