With only two weeks until the US Federal Reserve’s June policy meeting, its fourth this year, the latest economic projections report will be released. The dot plot of interest rates is naturally the market’s focus, as it will reflect whether Fed officials are considering actively raising interest rates given the lack of significant pullback in US oil prices since the outbreak of the conflict with Iran. Given the uncertain outlook for interest rate movements, investors’ willingness to buy gold at high levels in the short term is unlikely to be strong.

On the other hand, if the US and Iran once again signal that they will be able to reach a ceasefire agreement, the willingness to buy gold will gradually increase, providing impetus for a rebound in gold prices.

A short position can be established around $4,536, with a short-term target of $4,437 for profit-taking and a stop-loss at $4,556.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com