U.S. Markets
U.S. equity markets remain constructive, with the S&P 500 holding near 7,515 after recently breaking above its previous all-time high zone near 7,500. Since U.S. markets were closed yesterday for Memorial Day, trading activity remained limited, and there was no major cash-market volatility to change the broader technical structure.
The broader tone still favours risk assets, but optimism has become more balanced. Markets are encouraged by reports of progress toward a U.S.–Iran framework deal, including efforts to reopen the Strait of Hormuz and extend the ceasefire. However, sentiment remains fragile after fresh U.S. strikes in southern Iran targeted missile launch sites and mine-laying boats. CENTCOM described the strikes as defensive, while Secretary of State Marco Rubio said reopening Hormuz could still take a few days and that the waterway would reopen “one way or the other.”
This leaves markets in a slightly cautious but still supportive setup. The reopening of Hormuz would ease energy-supply concerns and reduce inflation pressure, which is positive for equities. At the same time, the fresh strikes show that geopolitical risk has not fully disappeared. Any retaliation from Iran or delay in the agreement could quickly lift oil prices again and pressure risk assets.
Technology and AI-linked stocks remain an important support for U.S. equities. Investor interest in Big Tech and AI infrastructure continues to stay strong, helping offset concerns around elevated valuations and geopolitical uncertainty. As long as bond yields stay contained and oil does not move sharply higher, growth and technology stocks are likely to remain key drivers of market momentum.
Technically, the breakout above the 7,500 zone remains significant, as it confirms the continuation of the broader uptrend. This level now acts as immediate support for the index. Additional support is seen near the 7,435 pivot zone, while on the upside, immediate resistance is placed near 7,550, followed by the next target around 7,608. As long as the index continues to hold above the previous breakout zone, the structure remains bullish, with momentum favouring buy-on-dips positioning.
Crude Oil
WTI fell sharply in yesterday’s session, sliding by over 7.2%, before rebounding in today’s session, trading 1.8% up at $94.90. Brent also saw a similar fall yesterday and is trading 2% down today, near $95.6. Prices remain highly volatile as traders balance hopes for a U.S.–Iran agreement against the risk of further military escalation.
U.S. officials continue to signal that negotiations are progressing. Both sides indicated progress on a memorandum of understanding designed to halt the conflict and provide negotiators with a 60-day window to finalise a peace deal. Reflecting this tentative de-escalation, ship-tracking data showed that three liquefied natural gas tankers recently crossed the strait bound for Pakistan, China, and India. Additionally, a supertanker carrying Iraqi crude oil departed for China after being stranded for nearly three months. However, markets remain cautious due to the lack of concrete progress and Iran’s continued resistance on key issues, including the Strait of Hormuz and sanctions relief. Fresh U.S. military strikes in southern Iran and reports of explosions near the Strait have reinforced fears that supply disruptions could persist longer than expected. The market remains undersupplied, and the geopolitical risk premium remains elevated.
From a technical perspective, WTI faces immediate resistance near $95.35, with support around $93.10, followed by $91.20. Brent may find resistance near $97.45, with support around the 100-day EMA at $93.23. The near-term bias remains cautiously bullish as long as supply risks persist.
Gold & Silver
Gold witnessed a strong rebound in the previous session, gaining 1.35% to settle at $4,570. However, at the time of writing, gold is currently trading 0.83% lower at $4,532 as traders remain cautious amid escalating geopolitical tensions in the Middle East.
Market sentiment has weakened today after reports stated that the U.S. sank two Islamic Revolutionary Guard Corps (IRGC) vessels attempting to lay mines in the Strait of Hormuz, while also striking missile launchers near Bandar Abbas following Iran’s launch of surface-to-air missiles at U.S. aircraft. This escalation has reduced optimism surrounding negotiations to reopen the critical shipping route, keeping fears of supply disruptions and energy-driven inflation elevated.
However, President Donald Trump also stated that negotiations with Tehran were progressing constructively, raising hopes for a potential diplomatic breakthrough, although he cautioned that further military action remains possible if talks fail to advance. Also, the sharp decline in oil prices over the past week has helped ease inflation concerns, providing support to the bullion.
Despite the current pullback, the overall technical outlook for gold remains positive. Prices continue to hold above a key ascending trendline support on the 4-hour chart, which has remained intact since 19th May and has been respected on four separate occasions. As long as gold sustains above the crucial $4,515 level, which falls on the trendline support, the intraday bullish structure remains valid, with expectations of a potential rebound from current levels. The next key support to watch is its 200 Day SMA at $4,383. Immediate resistance is at the previous session high at $4,580, followed by the next resistance at the 50 Day SMA at the $4,648 level. Silver is currently trading at $76.49, down by 2%. Immediate support is at the ascending trendline at $74, and the resistance is at last session’s high at $78.79.
Gold prices in the UAE today are as follows:
24 Carat – AED 545.25
22 Carat – AED 505.00
21 Carat – AED 484.25
18 Carat – AED 415.00
