As of Tuesday morning Hong Kong time, Iran had still not acknowledged that it would resume dialogue or negotiations with the United States. However, Trump continued to state that Iran had indeed requested talks with the US, and claimed that negotiations had begun and further talks were imminent.

Market participants are unlikely to have strong optimism regarding the stalemate in US-Iran negotiations. Therefore, risk aversion towards gold is unlikely to increase in the short term; instead, gold prices are likely to remain under pressure due to concerns about a deteriorating situation.

On the other hand, investors are awaiting the latest US non-farm payroll data this week to assess whether the Federal Reserve has a basis for raising interest rates. Therefore, a cautious approach to the market will also weigh on gold prices. Gold prices may first test the support level of $4,003 before showing significant rebound momentum.

A long position can be established around $4,003, with a short-term target of $4,096 for profit-taking, and a stop-loss at $3,983.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com