Following the conclusion of the UN General Assembly and the meeting between the Chinese and US leaders—two major recent market focuses—the situation in Iran has neither improved nor worsened, but has simply become more stalemated. Because of this situation, US crude oil prices remain hovering around $90 per barrel, a still relatively high level. This is unlikely to alleviate investor concerns about the possibility of a Federal Reserve rate hike in October. Therefore, the direction of interest rates should suppress the upward trend of gold prices in the short term, and gold prices may face significant downward pressure after climbing to around $4,319.

On the other hand, market participants are awaiting the release of the US August Personal Consumption Expenditures Price Index (PCE) data this Wednesday to infer whether the Federal Reserve will take a series of rate hikes. A cautious market sentiment will also suppress the upward momentum of gold prices.

Gold prices may fluctuate between $4,211 and $4,319 in the short term. Pay close attention to the lower end of the range for potential buying opportunities. There is room for a rebound in the short term. $4,191 can be used as an important price defense reference 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