Gold continues to hold $4,000 as U.S.-Iran pause pressures crude oil

Key Points:

• Spot gold and silver prices rose modestly on Monday afternoon, supported by lower oil prices that eased inflation concerns linked to the U.S.-Iran conflict, with gold near $4,075.60/oz and silver at $58.29/oz.
• The upcoming Federal Reserve decision remains a key macroeconomic risk, as markets weigh the possibility of a 25-basis-point rate hike, which could cap gold’s gains amid uncertainty over future monetary policy.
• Tensions around the Strait of Hormuz continue to pose a risk premium for energy prices and gold, although a temporary pause in U.S.-Iran attacks led to a significant drop in crude oil prices, reducing some inflation pressures.
• U.S. equities showed mixed results with slight gains in the Dow and S&P 500, while Treasury yields eased to around 4.6% on the 10-year note and the U.S. dollar index softened slightly.
• Technical analysis indicates gold bulls aim to break above the $4,162-$4,214 resistance zone targeting higher moving averages, while bears look for a drop below $3,959 to open deeper downside levels.