Just as gold prices were teetering on the brink of collapse, hovering around the $4,000 level, US President Trump abruptly announced the cancellation of military action against Iran. Trump stated that consultations between the US and Iran had been approved by Iran’s top leadership, and that details of the agreement would be announced later. Although Iranian media claimed Trump’s remarks were inaccurate, the cancellation of the planned military strike against Iran on Thursday did alleviate market concerns about the situation in Iran, at least significantly reducing the number of people cashing out in the gold market to avoid risk, thus supporting gold prices. On the other hand, market expectations for the gradual reopening of the Strait of Hormuz also increased, causing US crude oil prices to fall after Trump’s comments. This halt in the rise of oil prices also reduced investor concerns about the Federal Reserve raising interest rates to curb inflation, providing impetus for risk-averse gold purchases.

Given the significant easing of the situation in Iran, the desire to buy gold at lower prices should reappear, potentially providing upward momentum for gold prices.

A position can be established around $4,171, with a short-term target of $4,298 for profit-taking, and a stop-loss at $4,151.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com