Gold rose on Thursday as comments from Israel\u2019s Prime Minister Benjamin Netanyahu about talks with Lebanon, plus a weaker US Dollar, supported demand. Prices moved up towards the $4,800 level.<\/p>\n
Netanyahu said he wants direct talks with Beirut, a day after an Israeli attack in Lebanon killed more than 300 people. He said talks would focus on disarming Hezbollah and establishing peaceful relations.<\/p>\n
AFP reported that Lebanon wants a ceasefire before any talks. The Strait of Hormuz stayed largely shut during the first 24 hours of a US-Iran two-week truce, with 5 vessels passing through versus about 140 per day before the war.<\/p>\n
WTI traded near $95.60, down 0.13%, while the US Dollar Index fell 0.30% to 98.63. The US 10-year yield slipped 2 basis points to 4.279%.<\/p>\n
US GDP rose 0.5% year-on-year in the last quarter of 2025 versus expectations below 0.7%. Core PCE inflation eased from 3.1% to 3% year-on-year, while Initial Jobless Claims rose to 219K and Continuing Claims fell to 1.794 million.<\/p>\n
Markets priced 7.5 basis points of rate cuts by year-end. Friday\u2019s CPI is forecast at 3.3% headline (from 2.4%) and 2.7% core (from 2.5%), alongside Michigan sentiment data.<\/p>\n
We saw hopes for Middle East de-escalation a few months ago with potential Israel-Lebanon talks and a US-Iran truce. However, the situation remains tense, as the Strait of Hormuz is still operating at a fraction of its normal capacity of over 90 tankers a day. This continued uncertainty provides a strong underlying reason for holding gold.<\/p>\n
The economic weakness we saw in late 2025, with just 0.5% GDP growth, has persisted into the first quarter of 2026. As was expected, the March CPI report came in hot, and inflation remains stubbornly above the Fed’s 2% target, with the latest figures still hovering near 2.8%. This environment of slow growth and sticky inflation increases the appeal of gold as a store of value.<\/p>\n
Because of this persistent weakness, traders are now pricing in at least 50 basis points of Fed rate cuts by the end of the year, a significant shift from the mere 7.5 points expected a couple of months ago. This has kept pressure on US Treasury yields, with the 10-year yield now trading closer to 4.15%. A weaker dollar and lower yields are classic tailwinds for bullion.<\/p>\n
This environment of high uncertainty and potential for sharp price moves makes options attractive. We believe traders should consider buying call options or implementing bull call spreads to target a move toward the $5,000 psychological level. This defines your risk while maintaining exposure to the upside if geopolitical or economic news pushes gold higher.<\/p>\n
For those trading futures, the technical levels mentioned previously remain critical. A sustained break above the $4,857 resistance opens the door for a quick run higher. However, we must watch the 20-day moving average, now around $4,750, as a key level of support; a break below it could signal a sharp, short-term correction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold climbed toward $4,800 on Netanyahu-Lebanon talk hopes and weaker dollar, while markets awaited CPI inflation data.<\/p>\n","protected":false},"author":87,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-50609","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t