Listen to the market mood for XAUUSD in the coming session in regards to the US-Iran situation:
The market, as yesterday, remains focused on geopolitical concerns following Iranian missile strikes on two US and coalition air bases in Iraq. On the news of this strike both oil and gold received bids as expected, but overnight gains in gold and oil have been limited as a response from the US is anticipated.
The key focus for today is to watch out for any US retaliation. If the US does retaliate further gold and oil buyers can be expected at the market. In this scenario, we would be expecting gold buyers on safe-haven plays and oil buyers on supply concerns that a wider Middle East conflict will reduce the supply of oil. The US has already stated that it had identified 52 Iranian targets. Will they strike back or not? However, in the absence of any US revenge, we are not expecting recent oil and gold highs to be breached today as moves are already overstretched.