Assuming no bad news is good news, the developments in the Iranian situation are likely to bring far more good news than bad. The Iranian Foreign Ministry stated that after 18 hours of marathon negotiations, Iran and the US have reached an agreement, and technical talks are now underway following this first round. For the time being, the situation in Iran has eased again, which should be beneficial for those looking to buy gold at lower prices.

On the other hand, US crude oil prices have now fallen below $75 per barrel. If they continue to decline in the short term, potentially reaching around $69 per barrel, investor concerns about a significant interest rate hike by the Federal Reserve should decrease, boosting risk appetite for gold and providing momentum for a rebound in prices.

A position can be established around $4,131, with a short-term target of $4,250 for profit-taking and a stop-loss at $4,111.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com