In the short term, gold prices are unlikely to escape their downward trend, primarily due to three main pressures. First of all, market participants’ expectations that the Federal Reserve has a very low chance of cutting interest rates this year are increasing, and concerns about a potential rate hike are also rising. This interest rate movement should dampen investors’ risk appetite for buying gold, thus putting downward pressure on prices. Secondly, the instability in the Middle East, stemming from situations in Iran, Lebanon, Israel, and Palestine, offers little positive outlook. The desire to cash out and avoid related risks in the gold market far outweighs interest in buying gold. Third, investor expectations for continued large-scale gold purchases by central banks worldwide in the second half of the year are currently low. This stagnation in rigid demand also puts pressure on gold prices.

A short position can be established around $4,379, with a short-term target of $4,266 for profit-taking and a stop-loss at $4,399

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com