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Gold Surges as Dollar Falls, Israel-Iran Tensions Lift Oil Prices

Tuesday Recap Gold prices surged nearly 2% on Tuesday as safe-haven demand returned amid a weaker US dollar and ongoing geopolitical tension. Spot gold ended the day up 1.84% at $3,289.98 per ounce. Oil prices, meanwhile, closed slightly lower as market uncertainty lingered. In early Asian trading Wednesday, both gold and crude oil spiked following reports that Israel may be preparing to strike Iranian nuclear facilities. Gold briefly surged past $3,310, and WTI crude oil jumped nearly 3% before both eased back slightly at the time of writing. Gold Market Recap Gold saw strong upside during Tuesday’s US session as the dollar continued to weaken and the Russia-Ukraine conflict showed no signs of easing. By close, spot gold rose 1.84% to $3,289.98. In Wednesday’s Asian session, risk aversion pushed gold prices past $3,310 before a slight pullback. The US Dollar Index slid to the 100 mark, providing firm support for gold. This followed Moody’s downgrade of the US sovereign credit rating last Friday from “Aaa” to “Aa1,” which triggered a sharp dollar selloff. Market uncertainty over Trump’s evolving tariff policy and cautious commentary from Fed officials further pressured the dollar. St. Louis Fed President Musalem warned that even if tensions ease after May 12, tariffs may still weigh heavily on the economy and weaken the labor market in the near term. “Ongoing uncertainty, combined with the Moody’s downgrade and a weak dollar, continues to support precious metals,” said David Meger, Head of Metals Trading at High Ridge Futures. Phillip Streible of Blue Line Futures added that $3,300 is a minor resistance level, with $3,350 as a key barrier. Gold is currently trading within a $3,150–$3,350 range. Gold – Technical Outlook Gold remained strong above the $3,200 level on Tuesday, breaking past $3,250 in the US session and reclaiming bullish momentum. In early Asia trading today, gold pierced $3,300, holding above $3,250 and continuing its upward trajectory.

Gold – Today’s Strategy Focus on buying the dips, with short-term sells on rallies as a secondary approach. Resistance: $3,330–$3,350 Support: $3,270–$3,250 Crude Oil Market Recap Crude oil prices were flat to slightly lower Tuesday, with WTI June futures down $0.13 (-0.21%) to $62.56 per barrel, and Brent July futures down $0.16 (-0.24%) to $65.38. In early Asia trading Wednesday, WTI spiked above $64 following reports that Israel may be planning a strike on Iranian nuclear facilities. According to Chinese state media, multiple US officials confirmed intelligence suggesting Israel is preparing for an attack, citing signs like movement of aerial munitions and completed air drills. Sources also noted this move could signal a sharp break from President Trump’s current approach and potentially spark wider regional conflict in the Middle East—something US officials have tried to prevent since the escalation of the 2023 Gaza war. Crude Oil – Technical Outlook Oil held above $61.50 on Tuesday and bounced higher into a bullish pattern. In Asia’s early session today, prices surged past $64, reaching around $64.10. The daily chart shows a clearly bullish setup, with momentum pointing toward continued upside in the short term.

Crude Oil – Today’s Strategy Prioritize buying on pullbacks, with short-selling on spikes as a secondary tactic. Resistance: $64.5–$65.5 Support: $62.0–$61.0

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This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.

Publication date:

2025-05-21 11:59:42 (GMT)

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