SPDR Gold Shares (NYSE:GLD) are advancing Wednesday as progress toward a Strait of Hormuz deal lifts gold by easing inflation concerns and rate hike fears, while a softer dollar adds a secondary tailwind to the precious metal.
- SPDR Gold Shares are powering higher. What’s fueling GLD momentum?
Hormuz Deal Progress Eases Inflation and Rate Hike Fears
Gold is catching a bid as negotiations to reopen the Strait of Hormuz appear to be closing in on a resolution, a development that would reduce the energy supply disruption that has been stoking inflation concerns and keeping Federal Reserve rate hike expectations elevated.
Trump told reporters Tuesday night that talks were moving along very nicely and said an answer would come within 48 hours, adding in a subsequent Fox News interview that the strait is going to be open very soon. For gold, which pays no yield and tends to lose appeal when interest rates rise, the prospect of a deal that takes pressure off energy prices and reduces the probability of further rate hikes removes a meaningful headwind that has been weighing on the metal.
The mechanics of a potential deal are taking shape. Iran and Oman are reportedly finalizing an arrangement under which inbound vessels would use an Iranian-coordinated channel while outbound traffic would run through an Omani route, with service fees potentially attached for security and environmental services.
GLD’s Chart: Buyers Regain the Wheel, But the Road Still Narrows
Technically, GLD is showing the early traits of a turnaround. It is trading 4.7% above its 20‑day SMA at $373.29 and 2.1% above its 50‑day SMA at $383.06, a setup that usually signals improving short‑term control by buyers.
Zoom out and the repair job is still in progress. Price remains 3.7% below the 100‑day SMA at $405.83 and 5% below the 200‑day SMA at $411.72, which keeps the longer‑term trend in “show me” mode. Momentum is improving, with MACD above its signal line and a positive histogram, suggesting downside pressure is easing compared with the prior downswing. That is constructive, but it is not yet a confirmed trend reversal. You can explore this dynamic with MACD signals.
The moving‑average structure still carries baggage. The 20‑day SMA sits below the 50‑day SMA, and the June death cross remains in place. That combination tends to keep traders cautious, treating strength as tradable until the chart proves it can sustain a broader shift.
- Key resistance: $402.00 A round‑number zone near the 100‑day SMA where rebounds have stalled.
- Key support: $363.50 A prior buyer‑defense area below the 20‑day SMA that serves as the line in the sand if this rally loses momentum.
GLD Shares Are Climbing
GLD Price Action: SPDR Gold shares were up 4.41% at $390.65 at the time of publication on Wednesday, according to Benzinga Pro.
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