According to Iranian media reports, Iran has submitted its response to Pakistan regarding the US’s proposed end-of-war plan. However, US President Trump stated that he completely rejects Iran’s response. This latest development in the bilateral agreement to end hostilities seems to have failed to provide much relief to the market. On the contrary, it may increase investors’ need to cash out in the gold market to avoid related risks, putting downward pressure on gold prices to test lower support levels.

On the other hand, the latest US non-farm payroll data for April, which was not expected to alleviate investors’ concerns about a possible interest rate hike by the Federal Reserve, will also contribute to a lack of support for gold prices at higher levels.

A short position can be established around $4,728, with a short-term target of $4,629 for profit-taking and a stop-loss at $4,748.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com