Given the easing of tensions in Iran, investors’ risk appetite for buying gold is expected to gradually increase. However, it’s important to note that unless US crude oil prices continue to fall to around $80 per barrel, high oil prices will continue to increase investor concerns about the Federal Reserve’s interest rate hikes to curb inflation. This factor will exert downward pressure on gold prices.

On the other hand, investors are cautiously awaiting the latest US non-farm payroll data to be released on Friday to gauge whether the Fed has an urgent need for rate cuts or a pressing need to raise rates to curb inflation. Therefore, influenced by this cautious market sentiment, gold prices may encounter resistance after a short-term surge to around $4,753.

A position can be established around $4,644, with a short-term target of $4,753 for profit-taking, and a stop-loss at $4,624.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com