Filmy Duniya

Gold traded steady as markets closely monitored ongoing US-Iran peace negotiations and the broader inflation outlook. Sentiment remained cautious after the US military carried out fresh “defensive” strikes in southern Iran earlier this week, targeting vessels and missile launch sites near the Strait of Hormuz. Iran retaliated with missile fire toward US aircraft, while US signaled that reopening the strait was inevitable “one way or another.”

Despite weekend optimism that both sides were progressing toward a framework peace deal, tensions remain elevated, with Israeli operations in Lebanon also intensifying. Gold has struggled to regain strong upside momentum as investors increasingly focus on the inflationary impact of elevated energy prices. Recent inflation readings across major economies have reinforced expectations that central banks may need to maintain a hawkish stance or even consider further rate hikes in the coming months.

Markets are currently pricing in nearly a 40% probability of a Federal Reserve rate hike by December. Higher bond yields and renewed strength in the US dollar have continued to pressure non-yielding assets like gold, although easing Treasury yields this week provided some support. Focus now shifts to upcoming US GDP data, while US consumer confidence data released earlier remained broadly in line with expectations. China’s industrial profit data also came in slightly stronger, indicating some resilience in manufacturing activity, says Manav Modi Commodities Analyst Motilal Oswal Financial Services Ltd.