Diplomatic Deadlock and Dollar Strength

The cancellation of high-level diplomatic efforts between the US and Iran has failed to trigger a new safe-haven wave. Instead, markets are focusing on the hawkish 'higher for longer' rate narrative pushed by the incoming Fed leadership, which has significantly bolstered the greenback.

Structural Inflation Hedges

While near-term prices are under pressure, gold remains underpinned by structural inflation risks. The IEA has categorized the current energy disruption as the largest supply shock on record, maintaining long-term interest in gold as a wealth preservation tool.