Gold Supported by Geopolitical Tensions

Gold prices remained at elevated levels, with reports of trading above $4,700, amid heightened geopolitical tensions in the Middle East. News regarding the Strait of Hormuz revived safe-haven demand for the precious metal, though traders are also monitoring developments in US-Iran peace negotiations and awaiting key US economic data.

US Dollar Firms as Peace Talk Optimism Wanes

The US Dollar held firm against a basket of currencies as market sentiment around fragile US-Iran peace talks turned cautious. Fading optimism for a potential ceasefire agreement contributed to a stronger Dollar, which in turn pressured other major currencies including the British Pound, New Zealand Dollar, and Japanese Yen.

Focus Shifts to Economic Data and Central Banks

Market participants are looking ahead to the upcoming US employment report, which is being closely watched for fresh direction. Elsewhere, divergent central bank policies were in focus as the Bank of Mexico proceeded with a rate cut, while rising real wages in Japan fueled speculation of a future rate hike from the Bank of Japan.