
*Dollar weakens after breaking below consolidation support
*Oil price reversal eases inflation fears, dragging yields lower
*U.S.–Iran headlines shift from escalation to renewed talks
*Gold rebounds on weaker dollar and declining Treasury yields
Market Summary:
The US dollar index declined after experiencing volatile, two-way price action, ultimately breaking below its recent consolidation range as bearish momentum took control.
At the start of the week, the dollar initially strengthened, supported by rising yields and oil prices. Donald Trump had signaled a potential blockade of the Strait of Hormuz following stalled U.S.–Iran negotiations, raising fears of supply disruption. This drove oil prices higher and pushed U.S. Treasury yields upward, temporarily supporting the greenback.
However, sentiment shifted sharply thereafter. The dollar reversed its gains after Trump indicated that Iran was willing to return to negotiations, reducing immediate escalation risks. As a result, oil prices dropped, easing inflation concerns and triggering a pullback in U.S. Treasury yields — key factors that weighed on the dollar.
The broader market remains highly volatile as conflicting developments continue to emerge between the United States and Iran. While earlier escalation signals drove risk-off sentiment, renewed prospects for dialogue have reintroduced hopes for a ceasefire, keeping markets in a state of uncertainty.
Meanwhile, gold prices rebounded, supported by the combination of a weaker dollar and declining yields. The easing of inflation expectations, alongside softer interest rate outlooks, has improved the appeal of non-yielding assets such as gold.
Technical Analysis

The dollar index is trading lower following a breakdown below the 98.50 support level, indicating a shift toward bearish momentum.
Momentum remains weak, with the MACD expanding to the downside and the RSI at 31 in oversold territory, suggesting continued selling pressure.
If bearish momentum persists, the index could extend losses toward 98.00, with further downside toward 97.40.
However, if selling pressure stabilizes, the index may rebound and retest 98.50 as resistance.
Resistance Levels: 98.50, 98.75
Support Levels: 98.00, 97.40

Gold prices are trading higher, currently approaching the 4,785.00 resistance level, a key near-term ceiling.
Momentum remains supportive, with the MACD strengthening and the RSI at 60 above the midline, indicating continued upside potential.
A sustained move above 4,785.00 could extend gains toward 4,840.00, reinforcing the bullish trend.
However, if momentum fails to hold, gold may pull back toward the 4,705.00 support level, with consolidation likely in the near term.
Resistance Levels: 4785.00, 4840.00
Support Levels: 4705.00, 4610.00
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