Tensions have suddenly escalated again in Iran following the US airstrikes on multiple Iranian targets in the Strait of Hormuz over the past weekend, in response to Iran’s earlier attack on a merchant ship. Meanwhile, Iran retaliated with attacks on US military facilities in the Middle East. While there are no reports of the two countries abandoning the ceasefire agreement for a larger-scale military attack, gold investors, sensitive to geopolitical situations, absolutely need to be vigilant. Therefore, the desire to buy gold at high levels is unlikely to be strong; instead, there is an opportunity to gradually cash out in the gold market to mitigate the risks associated with the situation, which should drag down gold prices as they test lower support levels.

A long position can be established around $3,987, with a short-term target of $4,112 for profit-taking and a stop-loss at $3,967.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com