As US‑Iran geopolitical tensions keep escalating, spot gold extended its rally overnight, hitting an intraday high of $4428.53 per ounce and a low of $4367.08 per ounce. It closed at $4416.48 per ounce, up 0.94%. Spot silver settled at $65.714 per ounce, gaining 1.65%.

During Tuesday’s ASIan session, spot gold opened at $4417.07 per ounce. It spiked to $4435.93 per ounce early in the session before pulling back to $4394.13 per ounce. At press time, gold traded near $4396 per ounce, down 0.46% on the day.

The US Dollar Index staged a rebound overnight, trimming its losses. It dipped as low as 99.30 and finished at 99.58, down 0.06%. US Treasury yields moved broadly higher. The 2‑year yield rose 0.7 bASIs points to 4.178%; the 10‑year yield climbed 2.5 bASIs points to 4.721%. The geopolitically‑sensitive 30‑year yield advanced 4.3 bASIs points to 5.309%, its highest level since June 2007.

US Treasury data showed that holdings of US Treasury securities by the UK, Japan and China all declined in June versus May. Japan held $1.117 trillion, a drop of $26.4 billion month‑on‑month. The UK held $939.99 billion, down $8.7 billion. China held $633.4 billion, a decrease of $26 billion.

International crude oil surged overnight. WTI crude closed at $84.11 per barrel (+3.16%); Brent crude finished at $91.09 per barrel (+2.77%). US Natural Gas CFD settled at $2.74 per MMBtu, down 0.94%.

The three major US stock indexes closed lower. The Dow Jones fell 272.39 points or 0.51% to 53460.02. The S&P 500 lost 40.39 points or 0.52% to 7745.37. The Nasdaq dropped 84.25 points or 0.32% to 26644.91.

Major European equity indexes ended in negative territory. Germany’s DAX 30‑0.37% at 26335.82; UK FTSE 100‑0.29% at 10719.15; France CAC 40‑0.66% at 8579.60; Euro Stoxx 50‑0.16% at 6529.35; Spain IBEX 35‑0.91% at 19973.54; Italy FTSE‑MIB‑0.02% at 53574.00.

On the Shanghai Gold Exchange, Au(T+D) closed +0.37% at 955.07 CNY/g; Ag(T+D) closed +0.49% at 16080.0 CNY/kg. In Tuesday’s early session, Au(T+D) rose 0.94% to 960.5 CNY/g; Ag(T+D) gained 1.18% to 16190.0 CNY/kg.

SPDR Gold Trust, the world’s largest gold ETF, increased its holdings by 7.132 tonnes, the biggest single‑day addition since June 18, bringing total holdings to 1030.66 tonnes. iShares Silver Trust reduced holdings by 39.35 tonnes to 15272.78 tonnes.

Today’s PBOC central parity rates: USD/CNY 6.7905 (+32 pips); EUR/CNY 7.8378 (+90 pips); HKD/CNY 0.86559 (+6.3 pips); GBP/CNY 9.1685 (+81 pips); AUD/CNY 4.8091 (+162 pips); CAD/CNY 4.8766 (+37 pips); 100JPY/CNY 4.2482 (-5 pips); CNY/RUB 12.5717 (+1057 pips); NZD/CNY 3.9942 (+77 pips); CNY/MYR 0.59899 (-41.2 pips); CHF/CNY 8.3502 (+252 pips); SGD/CNY 5.2982 (+83 pips).

Latest economic releases: Canada July CPI MoM 0.5% (forecast 0.40%, prior‑0.40%). US August NY Fed Manufacturing Index 20.6 (forecast 11, prior 15.6). US August NAHB Housing Market Index 35 (forecast 33, prior 34).

Analysts noted Canada’s headline inflation accelerated to 3.0%, slightly above consensus. Higher energy prices and World‑Cup‑driven travel costs were key drivers. The Bank of Canada is in no hurry to reset policy based solely on the July CPI print; policymakers will assess energy shocks and US‑Canada trade tensions before adjusting rates.

With US national debt approaching $40 trillion, federal interest expenses over the past 12 months have hit $1.4 trillion. Mounting fiscal pressure and waning confidence in fiat currency alongside central‑bank de‑dollarisation have boosted gold’s appeal as a fiscal‑risk hedge. Gold has rallied more than $1000 over the past year. As global central banks build gold reserves to diveRSIfy away from dollar assets, gold’s allocation value keeps rising.

Institutional analysis outlined three potential phases for gold: initial pressure from peRSIstent inflation and Fed on‑hold stance; a subsequent economic drag from energy‑price shocks; and stronger bullion support once monetary policy eases. The institution forecasts gold could reach $5200 per ounce by year‑end.

Geopolitical news: The 60‑day US‑Iran truce reached in June expired yesterday. President Trump stated he would not seek an extension. He said he was “in no rush” to engage Iran and demanded Iran “wave the white flag”. He also threatened to bomb Oman if it obstructed the United States. A spokesman for Iran’s Revolutionary Guard denied any secret‑channel talks with Washington.

Iranian officials stated Iran is shifting posture from defensive to “fully offensive”. Pressuring the US or counting on mediators for lasting peace is unrealistic; all Iranian entities stand ready to escalate tensions around the Strait of Hormuz. Iran will not wait indefinitely under maritime blockade.

On the daily chart, gold has printed two consecutive bullish candles yet remains within the past week’s trading range, oscillating around the $4400 psychological level. Price sits above the 5‑day and 100‑day moving averages, which are converging; watch their supportive power. MACD positive histogram is expanding; RSI hovers near 63.

On the 1‑hour chart, BOLLinger Bands are flattening. Short‑term EMA5 and EMA10 have formed a bearish crossover. MACD positive momentum has weakened; RSI has retreated near 47. Intraday bias expects consolidation within $4370‑$4435. A breakout higher targets $4445‑4450 or $4460. A breakdown lower targets $4360‑4350 or $4340.

Key economic data & events for today:

14:00 UK Jun 3‑month ILO Unemployment Rate

14:00 UK Jul Unemployment Rate

14:00 UK Jul Claimant Count Change

17:00 Germany Aug ZEW Economic Sentiment

17:00 Eurozone Aug ZEW Economic Sentiment

20:15 US ADP Employment Change (week ending Aug 1)

20:30 US Jul Housing Starts Annualized

20:30 US Jul Building Permits

20:30 US Jul Import Price Index MoM

21:15 US Jul Industrial Production MoM

22:00 US Jul Pending Home Sales MoM

04:30(next day) US API Crude Oil Stocks (week ending Aug 14)

>

[Disclaimer]The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of SinoSound. SinoSound remains neutral regarding the opinions and statements contained herein and makes no representations or warranties, whether express or implied, regarding the accuracy, reliability, or completeness of the information provided.
The content of this article is intended for informational and reference purposes only. Readers should exercise their own judgment and assume full responsibility for any decisions or actions taken based on the information contained herein.

[Copyright Notice]This article is original content and is protected by applicable copyright laws. Any reproduction, distribution, citation, or use of this content must clearly acknowledge the original source:
Gold2U
www.gold2u.com
We reserve all rights and may take legal action against any individual or entity that fails to comply with this notice or otherwise infringes our intellectual property rights.