Just as the situation in Iran was deteriorating further, causing US crude oil prices to climb back above $90 a barrel, and interest rate futures markets indicated a 30% probability of a rate hike at next week’s Federal Reserve meeting, the US announced that, starting at 12:01 AM US time on Friday, it would impose new tariffs of 10% to 12.5% ​​on imports from 60 countries and regions, including Europe, China, and India. Although some goods, such as oil and natural gas, and products that cannot be produced or obtained domestically in the US, are exempt, goods from these affected trading partners still account for 99.4% of total US imports. Therefore, concerns about a renewed surge in US inflation are likely to increase, putting downward pressure on risk appetite for gold and creating significant resistance as gold prices repeatedly test the $4,004 support level.

A position can be established around $4,004, with a short-term target of $4,103 for profit-taking and a stop-loss at $3,984.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com