May 29, 2026
US-Iran Tensions Escalate – Peace Hopes Fade
The US carried out a second airstrike on Iranian military facilities within three days, dimming prospects for a peace deal. Iran retaliated by attacking a US base in the Gulf. Key disagreements remain: Tehran insists on controlling the Strait of Hormuz and maintaining its nuclear program. President Trump rejected any "bad deal" and refused sanctions relief.
Dollar Index (DXY) Near 99.20 – 7 Weeks High
DXY is holding near a seven‑week high, supported by safe‑haven flows and rising rate expectations. Markets now price in roughly a 50% chance of a Fed rate hike by December. Key support at $98.70-98.60, resistance at $99.51 and $100.00. PCE data due later today – the Fed's preferred inflation gauge.
WTI Crude – Deadlocked Talks Keep Prices Above $87
WTI is trading near $87.80. Negotiations remain stuck on Hormuz control and sanctions. Technical levels support at $87.66 (Bollinger lower band) – a break could send oil to $80. Resistance at $93.57 and $96.40. Oil is still on track for a second weekly decline.
Gold Plunges Below $4,400 – Down 15% Since Conflict Started
Gold hit a two‑month low below $4,400 as a strong dollar and rate expectations crush demand. It has broken below all major moving averages except the 200 day MA ($4,399). Next support at $4,350. Resistance at $4,500 and $4,541.80. Even if a deal is reached, high energy prices may keep central banks hawkish.
Weekend Trading Takeaways
Dollar: Bullish but vulnerable to PCE surprise.Oil: Range‑bound with downside risk; watch Iran headlines.Gold: Bearish; any bounce may be limited.
US-Iran Tensions Escalate – Peace Hopes Fade
The US carried out a second airstrike on Iranian military facilities within three days, dimming prospects for a peace deal. Iran retaliated by attacking a US base in the Gulf. Key disagreements remain: Tehran insists on controlling the Strait of Hormuz and maintaining its nuclear program. President Trump rejected any "bad deal" and refused sanctions relief.
Dollar Index (DXY) Near 99.20 – 7 Weeks High
DXY is holding near a seven‑week high, supported by safe‑haven flows and rising rate expectations. Markets now price in roughly a 50% chance of a Fed rate hike by December. Key support at $98.70-98.60, resistance at $99.51 and $100.00. PCE data due later today – the Fed's preferred inflation gauge.
WTI Crude – Deadlocked Talks Keep Prices Above $87
WTI is trading near $87.80. Negotiations remain stuck on Hormuz control and sanctions. Technical levels support at $87.66 (Bollinger lower band) – a break could send oil to $80. Resistance at $93.57 and $96.40. Oil is still on track for a second weekly decline.
Gold Plunges Below $4,400 – Down 15% Since Conflict Started
Gold hit a two‑month low below $4,400 as a strong dollar and rate expectations crush demand. It has broken below all major moving averages except the 200 day MA ($4,399). Next support at $4,350. Resistance at $4,500 and $4,541.80. Even if a deal is reached, high energy prices may keep central banks hawkish.
Weekend Trading Takeaways
Dollar: Bullish but vulnerable to PCE surprise.Oil: Range‑bound with downside risk; watch Iran headlines.Gold: Bearish; any bounce may be limited.
