Pimco: Iran War Could Force Fed to Raise Rates

GLD’s technical indicators show that the MACD is below the signal line and the RSI is around 60, indicating it is not in an overbought region, which supports downward pressure. However, the price remains above the 20‑ and 50‑day moving averages and the overall trend is upward, so the move may not be very strong. A modest decline is expected in the short term.

Uncertainty surrounding the Iran conflict and the possibility of the Fed raising rates could heighten risk‑aversion in markets. The S&P 500 (SPX) currently sits in an overbought region on the RSI and the MACD is below its signal line, signaling potential short‑term selling pressure. However, the 20‑period simple moving average (SMA20) is above the 50‑period SMA (SMA50), which may act as medium‑term resistance. Accordingly, a modest decline is anticipated over the next 1–3 days.

Pimco’s assertion that the Fed might hike rates due to the Iran war could reduce risk appetite. The NDX has risen more than 4% in the past 24 hours, yet its RSI sits at 78.8, indicating overbought conditions. While the MACD and SMAs remain bullish, a short‑term pullback or consolidation is expected. Consequently, a modest decline or sideways movement over the next 1–3 days is likely.

Pimco’s focus on the possibility of the Fed raising rates due to the Iran conflict may lift the risk premium and bolster the dollar. The DXY fell 0.4% over 24 hours, and its RSI sits at 33.8, signalling an oversold environment. The MACD is negative but sits just above the signal line, indicating a short‑term rebound. Both the 20‑ and 50‑day moving averages lie above the price, suggesting the trend could still be slowly upward. Taken together, a modest rise in the DXY over the next one to three days appears likely.