Just as market participants were anticipating an agreement between the US and Iran on the Strait of Hormuz crisis, the US Central Command announced that US warships had struck Iranian military facilities responsible for attacking ships transiting the Strait of Hormuz. While the US military stated they were not seeking escalation, Trump warned on social media that if Iran did not sign an agreement soon, the US military would defeat them in a stronger and more forceful manner. This latest development in the Iranian situation is likely to dampen investor interest in gold, negatively impacting gold prices and causing them to repeatedly test lower support levels.

On the other hand, if the latest US non-farm payroll data released later tonight significantly exceeds the consensus expectation of 62,000 and the previous figure of 178,000, this strong job market foundation will also fuel investor concerns about a possible Federal Reserve interest rate hike, further pressuring gold prices.

A short position can be established around $4,753, with a short-term target of $4,644 for profit-taking and a stop-loss at $4,773.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com