US President Trump denied that the second consecutive day of no airstrikes against Iran was due to a weapons shortage. Whether this is true or not is worth noting, but it may not be the most pressing issue. The important question is whether the US and Iran will use this respite to arrange a new round of negotiations through intermediaries. If news emerges suggesting renewed negotiations between the two countries, risk appetite for buying gold at lower prices should increase, potentially leading to repeated tests of the resistance level around $4,123.

On the other hand, if US crude oil prices continue to test lower support levels, investors’ hopes that the Federal Reserve will not need to raise interest rates rapidly to curb inflation should increase, which could also provide momentum for a rebound in gold prices.

A long position can be established around $4,032, with a short-term target of $4,123 for profit-taking and a stop-loss at $4,012.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com