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News Topical, Digital Desk : A week of sharp diplomatic events, from the breakdown of talks between the US and Iran in Islamabad to the sudden ceasefire and the brief opening of the Strait of Hormuz, saw significant fluctuations across asset classes.
US Dollar falls for third consecutive week
The US dollar index fell for the third consecutive week to a seven-week low of 97.6 in the week ended April 17. Global risk sentiment improved after Iran briefly reopened the Strait of Hormuz. Wall Street responded with a rally, with the Dow rising 3.2 percent, the S&P 500 climbing 4.5 percent to cross 7,100 for the first time, and the Nasdaq gaining 6.8 percent.
The dollar got some support due to the cautious stance of Federal Reserve officials. Mary Daly said that due to uncertainty regarding conflict and oil prices, they have adopted a wait and watch approach. US Treasury Secretary Scott Bessant also seemed to agree with this view.
Gold and silver rise for the fourth consecutive week
Comex Gold and Silver rose for the fourth consecutive week (Gold Silver Price Latest News) and reached a one-month high. Gold after touching the level of $4,900 closed around $4,825 per ounce due to profit booking. Silver, on the other hand, rose by more than 7 percent to close at around $82 per ounce, although it came down slightly from the day's high of $83.
The gains were primarily driven by dollar weakness and hopes for a ceasefire, while the continued ceasefire between Israel and Hezbollah also provided support. Base metals also gained, with copper rising nearly 3 percent to close at around $13,347 per tonne, a two-month high.
MCX Gold Price
MCX Gold futures are currently trading in a sideways to mildly bullish range, with prices rising slowly but remaining below a key falling trendline. A break and sustain above Friday's high could confirm a trendline breakout, strengthening the bullish momentum. On the upside, immediate resistance is ₹1,57,500 per 10 grams, followed by a strong level of ₹1,59,200. On the downside, ₹1,51,200 is the nearest support, and a fall below this could lead to weakness towards ₹1,50,300.
Crude oil prices were the most volatile
asset this week. Following the breakdown of US-Iran talks in Islamabad, WTI and Brent prices rose above $105 and $103 per barrel, respectively, as supply risks in the Strait of Hormuz increased and tanker movement was significantly reduced.
Both prices subsequently fell sharply on Friday, with WTI falling to $80.6 and Brent falling to $86 per barrel, after Iran's foreign minister declared the Strait open to all merchant vessels, and Donald Trump declared it fully open and ready for trade.
However, on Saturday, Iran reimposed sanctions, citing a lack of US trust. IRGC boats fired on a passing tanker, causing several vessels to return. The situation in the Strait remains unclear, and the US blockade of Iranian ports continues, which could further volatility in crude prices, risk sentiment, and global markets.
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