Gold Pulls Back After Hitting $4,180 as Geopolitical Risk Sends Crude Higher

Gold gave back most of its earlier gains because a surge in crude oil prices, driven by escalating geopolitical tensions, increased the likelihood that the Federal Reserve might pause its interest rate hikes. The price had reached a high of $4180 yesterday and is now trading around $4049.

With Tehran accusing Washington of breaking the truce amid rising hostilities documented on July 7–8, the fragile US–Iran ceasefire has swiftly broken down after fresh US military measures that caused retaliatory strikes targeting Bahrain and Kuwait. A serious flashpoint once more, the Strait of Hormuz creates questions about possible upsets to regional stability, oil supplies, and world trade. While experts caution that additional strikes or maritime incidents could trigger broader consequences, markets have reacted by pricing in higher geopolitical risk premiums, especially in crude oil, Gulf shipping, defense stocks, and safe-haven assets. Important events to keep an eye on are current strikes, any negotiations to get discussions back underway, and developments in the Strait, as a de-escalation signal could rapidly reduce tensions, while more attacks would probably keep market volatility high.

 Near -term support -$4035.  Major bearishness below $3940. Any violation below targets $4000/$3980/$3940. Near-term resistance - $4205/$4245/$4269/$4300/$4400.

 It is good to sell on rallies around $4078-80 with SL around $4135 for a TP of $3940/$3880/$3800.