The U.S. Federal Reserve will release its latest Beige Book report at 2:00 AM Hong Kong time on Thursday. This report, covering the 12 Federal Reserve districts, will be a key reference for the Fed’s fourth policy meeting of the year in two weeks. If the Beige Book’s description of inflation increases market concerns that the Fed will need to raise interest rates to curb inflation, the movement to cash out and avoid the risk of rising interest rates in the gold market will intensify, putting downward selling pressure on gold prices to test lower support levels.

On the other hand, Iran and the United States are unlikely to reach a smooth and satisfactory ceasefire agreement in the short term. Investors may worry that the protracted conflict in Iran could reignite tensions in the Strait of Hormuz, further dampening investors’ risk appetite for gold and putting significant downward pressure on gold prices.

A short position can be established around $4,519, with a short-term target of $4,416 for profit-taking and a stop-loss at $4,539.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com