Diplomatic Deadlock

The failure of the Islamabad delegation to convene has left the market in a 'wait-and-see' mode. While the immediate threat of escalation has been deferred by the U.S. extending the ceasefire, the continued closure of the Strait of Hormuz keeps a significant floor under bullion prices.

Federal Reserve Uncertainty

Additional pressure on gold stems from the Senate confirmation hearing of Kevin Warsh for Fed Chair. Warsh's pledge for a new independent framework to combat persistent inflation has bolstered the US Dollar, making gold more expensive for international buyers.