It’s a fact that negotiations between the US and Iran to end the war are deadlocked. However, it’s also a fact that concerns about further escalation of tensions between the two countries haven’t intensified. The fact that both countries are currently engaged in heated verbal exchanges is undeniable. Furthermore, the fact that US crude oil prices remain high is even more undeniable. For investors worried about the Federal Reserve raising interest rates to curb inflation, this significantly reduces their willingness to aggressively buy gold. Therefore, if US crude oil prices continue to remain high, hovering above $88 per barrel, gold prices could experience a sharp rise followed by a significant fall in the short term.

Furthermore, if the US dollar index continues to rise and approaches the 100 level again, this dollar factor will also put significant downward pressure on gold prices upon reaching these high levels.

A short position can be established around $4,802, with a short-term target of $4,697 for profit-taking and a stop-loss at $4,822.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com