As the U.S. dollar declined and Treasury's efforts to keep longer-term yields under control continued to underpin bullion, gold prices on Friday stayed firmly above the $4,500-per-ounce level, leaving the metal on track for a third consecutive weekly increase. Gold has increased by around 4% as a result of this week's gain, and it is expected to close August more than 11% higher.
Oil prices were steady in early trading on Thursday as investors assessed the outlook for the US-Iran confrontation and the security of shipping through the Strait of Hormuz. According to Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, oil prices have stayed elevated due to intermittent attacks in the Middle East. However, the market lacks momentum without a substantial escalation. Given the uncertainties surrounding peace talks and tensions between the United Arab Emirates,
President Donald Trump said on Wednesday evening that the United States will impose more stringent economic sanctions on Iran as the two countries continue to disagree over the Strait of Hormuz.
Gold prices remained at a more than two-month high on Thursday, aided by lower US Treasury yields following the government's announcement of a wider program of buybacks for longer-term debt. A weaker dollar and revived promises of improved financial conditions also bolstered bullion, though investors remained wary of the Federal Reserve's hawkish inflation outlook.
My overall bias is still bullish, but at current prices I’m not interested in chasing the move. From a technical perspective, the structure remains constructive. Since the June lows, GBP/USD has developed a clear bullish sequence and is now trading inside the 1.3560–1.3650 resistance area. This is exactly why, despite maintaining a bullish outlook, I would rather see a pullback before looking for new long opportunities.
EURUSD has entered a bullish consolidation phase. The Euro's sharp rise is underpinned by a sell-off in the US Dollar (USD) following a slump in US bond yields.