Given the lack of significant improvement in the Strait of Hormuz crisis, and the US denial of any Iranian missile strikes against its frigates while stating that commercial vessels flying the US flag have successfully passed through the strait, coupled with the renewed surge in US crude oil prices above $100 per barrel, investor concerns about rising inflation are likely to intensify, along with an increased vigilance regarding the possibility of a Federal Reserve interest rate hike. Therefore, risk aversion towards buying gold may be suppressed in the short term, potentially leading to a period of consolidation and testing of lower support levels.

Furthermore, market participants are also considering whether US President Trump, before his visit to China, will demonstrate a willingness to reduce the likelihood of a large-scale naval conflict with Iran in the Strait of Hormuz, which could provide support for gold prices.

A short position can be established around $4,563, with a short-term target of $4,449 for profit-taking and a stop-loss at $4,583.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com