Gold is set for a weekly loss as escalating US-Iran tensions fuel inflation concerns, diminishing expectations for gold to reach $8,000 by June. Meanwhile, disruptions in the Strait of Hormuz are increasing the probability of WTI Crude Oil surging to $160 in April.
Despite a ceasefire extension, gold's role as an inflation hedge is softening. Traders are balancing inflation expectations with the Federal Reserve's interest rate policies. The WTI Crude Oil market is experiencing increased activity due to ongoing supply chain disruptions in the Strait of Hormuz, with a high probability of crude oil exceeding its all-time high by April 30.
Volume analysis reveals a thin order book in the crude oil market, indicating that significant trades could substantially impact prices. Traders are closely monitoring geopolitical developments and official announcements for potential shifts in supply and demand dynamics. The potential for WTI Crude Oil to hit $160 hinges on the persistence of these supply disruptions.