Just as market hopes for a peace agreement between the US and Iran were fading, the UAE claimed a drone attack on its nuclear power plant. While no organization has yet claimed responsibility, concerns that the conflict could spread to other Middle Eastern countries are likely to escalate rapidly.

Furthermore, US President Trump posted on social media that Iran needs to comply quickly without hesitation, or it will lose everything. Reports indicate that Trump will hold a meeting with his national security team in the White House Situation Room this Tuesday, where they are expected to discuss further attacks on Iran. This escalating geopolitical tension is likely to dampen investor appetite for gold and prompt investors to cash out to avoid related risks, putting downward pressure on gold prices.

A short position can be established around $4,617, with a short-term target of $4,455 for profit-taking and a stop-loss at $4,637.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com