Trump's Iran U-Turn Triggers Rapid Sell-Off in Gold Futures
The ongoing conflict between the US and Iran has reached its 158th day, with tensions flaring up again after President Trump's latest comments. Trump threatened Iran with 'decapitation' and said he wants to give them 'every last chance' before taking action. However, his stance on Iran has been inconsistent, and oil prices have plummeted in response.
Gold futures, which had been trading in a narrow range between $4,215.98 and $3,958.39, experienced a sharp sell-off after Trump's comments. Despite testing the key resistance at $4,508 on June 5, gold futures closed the day at $4,045.79. The asset has consistently remained under selling pressure since then, with Trump's shifting stances on Iran being a major concern.
The breakdown of the Strait of Hormuz remains intact, and the depleting stocks of munitions in Washington are also contributing to the uncertainty. With gold futures currently trading at $4,134.25, trying to hold the immediate support at $4,124.12, a breakdown could push the asset to test the next key support at $4,075.53.