There is a significant chance that gold prices will fall below $4,400 in the short term. This is primarily because while investor concerns about further escalation of tensions between the US and Iran have not increased, US crude oil prices, despite a slight pullback, remain at relatively high levels. This high oil price has led to rising inflation, reinforcing investor anxieties about a potential Fed rate hike. Consequently, there is likely to be increased cashing out activity in the gold market as investors seek to hedge against the risk of Fed rate movements, which will likely drag down gold prices as they test lower support levels. Unless US crude oil prices quickly fall below $80 a barrel, gold prices may encounter resistance around $4,500 in the short term and need to fall below $4,400 to stabilize.

A short position can be established around $4,467, with a short-term target of $4,348 for profit-taking and a stop-loss at $4,487.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com