The U.S. Energy Information Administration (EIA) released its latest oil price forecast, raising its average price forecast for London Brent crude oil futures this year by 6% to approximately $96 per barrel. It also raised its fourth-quarter average price forecast by 15% to approximately $105 per barrel, and its average price forecast for next year by 14%, projecting $84 per barrel. The EIA also predicts that rising heating fuel prices in the U.S. this winter will lead to a 21% increase in U.S. household bills.

This inflationary outlook driven by oil prices is unlikely to quell investor concerns about a need for interest rate hikes by the Federal Reserve. Risk appetite is unlikely to rise significantly, which should weigh on gold prices due to a lack of support at higher levels.

Gold prices may fluctuate between $4,118 and $4,217 in the short term. Investors should pay close attention to potential entry opportunities at the lower end of this range, as there is room for a short-term rebound. $4,098 can serve as an important defensive level; appropriate risk management is essential.

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