EBC Markets Briefing | Bullion edges up after Trump backed Iran talks again

Gold rose on ​Monday as oil prices fell after Trump said he had called off the strikes and described a deal covering the Hormuz Strait and Iran's denuclearization as "imminent."

Kuwait reported Saturday that its military intercepted and destroyed multiple Iranian drones after Tehran launched an aerial wave targeting critical infrastructure in the country's north.

Three Fed officials who dissented at the policy meeting last week in favour of a rate hike expressed concerns that without an immediate increase in short-term borrowing costs, ​inflation will stay ​above the ⁠2% target.

Global central bank gold purchases tumbled to the lowest level in the period in more than 15 years in Q1, indicating a potential slowdown in one of the primary drivers of bullion demand.

That would pose a substantial headwind for gold prices, compounding the asset's existing 30% retracement from its January peak. But the WGC's estimate based on incomplete disclosures by the policymakers.

Gold ETF flows remained positive at $8 billion in H1, led by Asia buying. Despite that, they experienced a massive net outflows during June due to a sharp drop in prices.

EBC Financial Group analysts says, bullion was providing a highly distinct bullish divergence. A safer right-side entry would involve waiting for a confirmed daily breakout above $4,157, buying the subsequent retest.

Asset Recap

As of market close on 31 July, among EBC major products, Amazon shares led gains after reporting the strongest expansion since 2021 of the cloud computing business.

Apple's earnings, revenue and iPhone sales were all above market expectations; however, the company issued weak guidance for the current quarter, citing "supply constraints".

Japan's finance ministry said it had conducted a coordinated yen-buying operation with the US Treasury on Friday, marking a rare joint move by the two allies to stem sharp swings in the yen.

A portfolio diagnostic is critical to managing tail risk. EBC Turbo leverages a proprietary scoring model to run a six-dimensional analytics scan within 5 seconds, mapping your risk-return dynamics and decoding your trading DNA.

EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.