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Gold Dec '24 (GCZ24)

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Gold Futures Market News and Commentary

Dollar Supported by Iran War and Slumping Stocks

The dollar index (DXY00) on Thursday rose by +0.35%.  The dollar rose on Thursday as doubts about whether a ceasefire in Iran will materialize weighed heavily on stocks and boosted safe-haven demand for the dollar.  Also, Thursday’s decline in US weekly continuing unemployment claims to a 1.75-year low is a sign of a strong labor market that is hawkish on Fed policy and dollar-supportive.  In addition, Thursday’s +4% surge in crude oil prices pushed inflation expectations higher and may prompt the Fed to keep monetary policy restrictive, a bullish factor for the dollar.

The dollar found support on Thursday after Axios reported the Pentagon is developing military options for a “final blow” in Iran that could include the use of ground forces and a massive bombing campaign if there is no progress in diplomatic talks and the Strait of Hormuz remains closed when President Trump’s deadline ends this weekend.

US weekly initial unemployment claims rose by +5,000 to 210,000, righ... Read more

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