Gold prices rebounded in the trading day following the Federal Reserve’s first interest rate hike in over three years, primarily driven by a slight decline in US crude oil prices. This immediately fueled investors’ concerns that the Fed’s aggressive rate hikes might be excessive, increasing their interest in buying gold at lower prices. However, whether gold prices can successfully and easily maintain their position above $4,400 depends on investors’ expectations that the situation in the Middle East will not deteriorate as much as anticipated. If tensions in the Middle East gradually escalate again, the market will likely see increased profit-taking at higher levels to avoid related risks, putting pressure on gold prices to retrace.

If US crude oil prices rebound in the short term and continue to trade above $95 per barrel, persistently high oil prices will continue to make investors worry that energy-driven inflation will not fall quickly. This could lead to a resurgence of negative sentiment regarding the Fed’s continued need to raise interest rates, which would also put pressure on gold prices.

Gold prices may fluctuate between $4,297 and $4,396 in the short term. Pay close attention to the potential entry opportunities at the higher end of this range. There is room for a pullback in the short term, and $4,416 can be considered an important defensive level. Be sure to take appropriate risk precautions.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for market observation and do not constitute investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com