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Tensions in the Middle East intensify, gold plummets by $300, crude oil rises and falls
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Hello everyone, today XM Forex will bring you "[XM Forex Platform]: Tensions in the Middle East have intensified, gold plummeted by $300, and crude oil rose and fell." Hope this helps you! The original content is as follows:
On March 4, in early trading in Asia on Wednesday, Beijing time, the U.S. dollar index was hovering around 99.05. On Tuesday, tensions in the Middle East heightened market expectations that global inflation will continue, triggering widespread demand for safe-haven assets. The U.S. dollar index strengthened, eventually rising 0.52% to 99.06 points; the benchmark 10-year U.S. bond yield closed at 4.061%, and the 2-year U.S. bond yield, which is sensitive to the Federal Reserve's policy interest rate, closed at 3.516%. Affected by the strength of the U.S. dollar and the bleak prospect of interest rate cuts, spot gold fell by $300 during the day and finally closed down 4.39% at $5,088.65 per ounce; spot silver finally closed down by 8.17% at $82.06 per ounce. Affected by the prospect of obstruction in the Strait of Hormuz, international crude oil once rose nearly 8%. Later, Trump announced that he would provide insurance for maritime crude oil transportation and that the navy would escort it if necessary. International oil prices gave up some of their gains. WTI crude oil finally closed up 4.93% at US$74.31/barrel; Brent crude oil closed up 4.79% at US$81.2/barrel.
Analysis of major currency trends
U.S. dollar index: As of press time, the U.S. dollar is hovering around 99.05. The escalation of conflict in the Middle East is a major catalyst for the dollar's search for safe haven. Weekend strikes by the United States and Israel on Iran prompted Iran's Revolutionary Guards to announce a closure of the Strait of Hormuz, effectively cutting off tanker traffic through the bottleneck that carries about 20% of global oil consumption. Technically, the U.S. dollar index closed above the previous resistance level of 98.90 to 99.05. If the US dollar index climbs above 99.50 again, it willFacing the test of the next resistance level, the resistance level is located in the 99.70 to 99.85 range.



Gold and crude oil market trend analysis
1) Gold market trend analysis
In Asian trading on Wednesday, gold hovered around 5121.78. The precious metal fell amid a rebound in demand for the U.S. dollar (USD) and dim prospects for a U.S. interest rate cut. The U.S. ISM Services Purchasing Managers Index (PMI) report will be released later on Wednesday.

2) Crude oil market trend analysis
On Wednesday in the Asian market, crude oil was trading around 74.89. The WTI index jumped to its highest level since June 2025 as the widening conflict between the United States, Israel and Iran severely disrupts global energy supplies.

Foreign exchange market trading reminder on March 4, 2025
21:15 US ADP employment in February
22:45 US February S&P Global Services P MI final value
23:00 US February ISM non-manufacturing PMI
23:30 US to EIA crude oil inventories for the week of February 27
23:30 US to EIA Cushing crude oil inventory for the week of February 27
23:30 United States to EIA Strategic Petroleum Reserve inventory for the week of February 27
23:30 Bank of Canada Governor Macklem participated in the fireside chat
03:00 the next day the Federal Reserve released the Beige Book of Economic Conditions
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