Diplomatic Risk Management

Despite the naval blockade remaining in full force, the willingness of both sides to return to the negotiating table has temporarily capped bullion's upside. However, the $4,800 level is proving to be a formidable technical floor as long as the Strait of Hormuz remains restricted.

Hawkish Fed Pressure

Rebounding confidence in the US dollar following Kevin Warsh's nomination as Fed chair is acting as a primary headwind for gold. High interest rate expectations are forcing a rotation out of non-yielding assets even as geopolitical tensions simmer.