Optimism Returns to Markets (05.08.2026)

Global markets leaned toward a risk-on tone as optimism surrounding potential U.S.–Iran diplomatic progress supported currencies and precious metals. 

The euro approached the 1.18 level as easing geopolitical fears weakened the dollar, while sterling climbed to multi-month highs on expectations of further Bank of England tightening. Gold and silver recovered amid renewed Middle East uncertainty and persistent inflation concerns tied to elevated energy prices. Meanwhile, the Japanese yen weakened as investors returned to the dollar amid concerns that the fragile ceasefire between Washington and Tehran could deteriorate again.

Euro Nears 1.18 on Diplomacy

The euro approached 1.18 against the dollar as growing optimism for U.S.–Iran diplomatic progress improved global risk appetite. While expectations for aggressive ECB rate hikes have softened, several policymakers remain vocal about persistent inflation risks within the eurozone. Currency traders are keeping a close watch on Middle Eastern geopolitical shifts for the next major market move.

For EUR/USD, the initial resistance is seen at 1.1760, while the closest support is positioned at 1.1660.

Gold Reclaims 4,700 Level

Gold climbed past 4,700 this Friday after a volatile previous session. Growing U.S.–Iran friction revitalized safe-haven demand, while ongoing inflation risks from high energy costs kept investors on edge. Although prices are recovering, the metal still remains well below the highs recorded at the onset of the conflict.

First resistance is seen at $4725, with initial support near $4675.

Yen Weakens Amid Ceasefire Risks

The Japanese yen fell past 157 per dollar on Tuesday, erasing previous gains. A strengthening dollar, fueled by safe-haven demand, weighed on the currency as fresh Middle East tensions threatened to collapse the month-long ceasefire between Washington and Tehran, unsettling global markets once again.

Initial resistance stands at 158.10, while the first support is located at 157.20.

Sterling Hits Multi-Month High

The pound climbed past $1.36, marking its highest point since February as Middle East diplomatic progress lifted market confidence. Investors are tracking UK election results for their impact on Prime Minister Keir Starmer's political future. Additionally, expectations for another 50 basis points of Bank of England tightening continue to provide support for the currency's upward trajectory.

From a technical view, resistance stands near 1.3610, with support around 1.3520.

Silver Gains Amid Renewed Friction

Silver rose past $79 this Friday following a volatile session, finding support as Middle East tensions flared again. Renewed clashes between the U.S. and Iran dampened hopes for a diplomatic solution and reignited inflation fears, keeping investors cautious. Despite this recovery, silver prices remain more than 15% lower than their levels at the start of the conflict.

From a technical view, resistance stands near $80 while support is located around $77.70.