Gold prices (XAU/USD) traded in positive territory near $4,575 during the early Asian session on Wednesday, edging higher as markets reacted to ongoing developments in the Iran war and a fragile ceasefire between the US and Iran [1]. US Defense Secretary Pete Hegseth stated on Tuesday that the ceasefire with Iran was not over, despite continued exchanges of fire in the Gulf and ongoing struggles for control of the Strait of Hormuz [1]. The US Dollar softened following these headlines, providing some support to the USD-denominated gold price [1].
Uncertainty in the Middle East remains elevated after a day of clashes involving ships in the Strait of Hormuz and missile strikes against the United Arab Emirates (UAE). The UAE reported intercepting almost all of roughly 20 projectiles fired from Iran the previous day and stated it is responding to ongoing missile and drone threats [1]. The persistent US-Iran conflict in the Strait of Hormuz may limit further upside for gold prices [1].
Traders are also closely monitoring upcoming US employment data for April, with the ADP Employment Change report due later on Wednesday and the official jobs report expected on Friday. Market consensus anticipates the US economy will have added 60,000 jobs in April, with the unemployment rate projected to remain steady at 4.3% [1]. These data releases could influence interest rate expectations and gold's next major move [1].
CONCLUSION
Gold prices have edged higher amid heightened geopolitical tensions in the Middle East and a fragile US–Iran ceasefire, with the US Dollar softening and traders awaiting key US employment data. The ongoing conflict in the Strait of Hormuz and upcoming economic reports are likely to shape gold's near-term direction.