While the situation in Iran hasn’t deteriorated drastically, the renewed clashes and attacks between the US and Iran, along with Iran’s announcement that the Strait of Hormuz is currently impassable, suggest that investors’ risk tolerance for gold is unlikely to increase. In the short term, the need to cash out in the gold market to hedge against the risks of the Iranian situation is expected to intensify, putting downward pressure on gold prices.

If US crude oil prices rise again to $78-$80 per barrel in the short term, investors’ negative sentiment regarding the expectation of a quarter-point rate hike from Federal Reserve is the minimum in this year will increase, further weighing on gold prices.

A short position can be established around $4,147, with a short-term target of $4,002 for profit-taking and a stop-loss at $4,167.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com