Iran tensions rise: a setup brewing for gold and oil

Geopolitical tensions surrounding Iran might fuel safe-haven demand for gold.

A break above $3,403 might open the door for a test of the May high at $3,437. However, price action over the last two sessions potentially indicates that buyers are reluctant to drive spot prices above $3,400.

At the same time, analysts are suggesting that oil could climb toward $120 if Israel takes military action against Iran. “I don’t want to say it’s imminent, but it looks like something that could very well happen,” President Trump said during a White House event.

Meanwhile, cooler-than-expected US CPI and PPI prints have potentially strengthened expectations that the Federal Reserve could begin cutting interest rates by September, with a second cut possibly following before year-end.