ETO Markets Global Pulse: Gold Holds $4,000 as Shipping Risk Rises

Market Review

According to ETO Markets monitoring, on July 20 (Monday), spot gold edged lower, closing at USD 4,007.32 per ounce, down about 0.2%. August gold futures slipped about 0.1% to around USD 4,015.90.

On July 21 (Tuesday) during early Asian trading, spot gold continued to hover near the USD 4,000 level. Ongoing Middle East instability pushed oil prices higher and revived inflation concerns. At the same time, stronger FED rate-hike expectations kept gold in a cautious consolidation phase.

Global Headlines

Saudi Coalition Protects Strait Shipping

The Saudi-led coalition said it has started military operations to protect allied vessels passing through the Bab el-Mandeb Strait. The coalition said it will take necessary measures to secure navigation and respond to Houthi threats against commercial vessels. Houthi forces had earlier announced a maritime shipping ban against Saudi Arabia.

Mediators Propose Ten-Day Ceasefire Plan

A senior Iranian official said mediators in US-Iran talks have proposed steps to ease tensions, including a 10-day ceasefire. The proposal aims to support the resumption of last month‘s memorandum of understanding. Iran’s Foreign Ministry confirmed it had received the proposal but did not disclose details.

US Raises Tariffs On Canada

The White House said the US will impose an additional 50% ad valorem tariff on selected Canadian products. Washington cited discriminatory Canadian measures against US autos and auto parts. The new tariffs will take effect at 00:01 ET on August 19 and will be added on top of existing duties.

US Short Positions Near Records

S3 Partners data showed that short interest in S&P 500 constituents has climbed close to 3.79% of free float, near record levels. Short interest in Russell 3000 stocks rose to 6.3%, setting a new record. Goldman Sachs data also showed median short interest in S&P 500 stocks reached 3% of market value.

Korea Tightens Leveraged ETF Oversight

South Koreas Democratic Party called on the Financial Services Commission to strengthen monitoring of single-stock leveraged ETFs and introduce additional measures if needed. Lawmakers said regulators should improve market surveillance and assess follow-up regulatory steps where necessary.

ETO Markets Analyst View (Spot Gold)

Spot gold remains below a key turning point, with 4,245 acting as the main resistance level. If prices regain and hold above 4,245, upside potential may reopen, with resistance levels at 4,385 and 4,425.

If gold stays below 4,245, support at 4,170 and 4,110 will remain in focus. Overall, gold is still in a low-level consolidation phase while the market reassesses direction.

RSI is moving higher, showing early signs of short-term momentum recovery. However, gold has not yet reclaimed 4,245, so the sustainability of any rebound still requires confirmation.

Markets are currently pricing Middle East shipping risks, inflation expectations, and the FED rate path. Short-term price action may remain choppy and range-bound.

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