Trump Takes a Tough Stand Against Iran Amid Bridge Sabotage; Gold Remains Resilient Despite Bearish News, Revealing Key Insights

Huitong Network, July 22—— With the escalation of the US-Iran conflict, gold prices are resilient against bearish events and the risk-aversion logic has resurfaced.

On Wednesday (July 22) during the European and US sessions, gold prices maintained strong volatility and showed a clear trend of not falling despite bearish news, currently up 1.34% trading at $4,132/ounce.

This public stance on social media continues and upgrades the previous US countermeasures. The temporary ceasefire agreement initially meant to ease tensions has completely collapsed; both sides have entered a phase of normalized and escalating military retaliation.

US Military’s Multi-pronged Approach Suppresses Iran’s Position

Although the confrontation and air strikes in the Middle East continue, in terms of real battlefield and geopolitical dynamics, the US military is gradually establishing comprehensive pressure on Iran through a series of combined measures; the extreme risk of losing control is being effectively curbed:

Targeted Strikes on Financial Chains, Cutting Iran’s Economic Lifelines

The US is no longer limited to conventional sanctions but has gained in-depth control of the oil tanker transport network and Khamenei-related capital operations. By precisely tracking and cutting off Iran’s dark web financial chains and oil smuggling routes, its long-term economic support for confrontation is fundamentally weakened.

Weakening Conventional Forces, Locking on the “Kao Shan” Nuclear Facility

Through consecutive targeted strikes on Iranian military hangars, drone bases, and other facilities, the US military has weakened Iran’s conventional counterattack capabilities and accurately shifted its strategic focus to the highly concealed “Kao Shan” underground nuclear facility south of Natanz. The US’s absolute military deterrence has significantly restrained Iran’s ambition for extreme “nuclear brinkmanship.”

Multinational Coordination to Control Key Waterways, Breaking Blockade Threats

In response to Yemen’s Houthi armed threats to the Red Sea and Bab el-Mandeb Strait, the US has teamed up with the UAE and other allies for coordinated actions, regaining control of core shipping chokepoints like the Bab el-Mandeb and ensuring global energy and trade routes are not paralyzed.

Additional Military Budget, Demonstrating Long-Term Strategic Determination

As the US military further increases its funding and logistics support, the US demonstrates ample resource reserves and long-term resolve in tactical deployment, alleviating prior market concerns of “restraint due to fear” or ending up in a war of attrition.

Market Panic Gradually Subsides, Geopolitical Premium Fading

With the US military’s all-round involvement and suppression in funding, military, maritime routes and logistics, the Middle East’s evolution logic is shifting from initial “disorderly loss of control” to “controllable confrontation”:

Energy Premium Declines: Although oil prices briefly surged, the actual reduced navigation risks in the Bab el-Mandeb and Strait of Hormuz broke extreme expectations of a complete global energy supply chain disruption, capping further oil price increases.

Inflation and Interest Rate Expectations Stabilize: The loss of driving force for spiking oil prices has greatly eased the Fed’s panic of being forced into prolonged high interest rates due to secondary wave inflation.
Overall, the financial market has not fallen into panic as previously feared. Capital is reassessing the actual impact of the Middle East situation on the global economy and macro monetary policy.

Gold Shows Resilience Despite Bearish News, Early Signs of a Medium-Long-Term Bottom

Conclusion: The current US-Iran situation is shifting from “spreading panic” to “marginally controllable under US dominance,” and overall market panic has cooled noticeably.

Meanwhile, gold prices are shifting from being overly priced for inflation and higher rates to pricing in controllable inflation. On the contrary, with global economic weakness and the potential for long-term rate cuts, gold’s hedging role against geopolitical risks is re-emerging after being suppressed by inflation-driven rate hikes. If the US-Iran conflict continues to deteriorate, gold prices are logically supported to maintain their resilience.




(Spot gold daily chart, source: Yihuitong)

East 8th Zone 21:50, spot gold now quoted at $4,146/ounce.