Gold investors are currently hesitant to bet that gold prices have reached their absolute bottom and have strong rebound potential, as the situation with Iran remains unresolved, with no positive ceasefire agreement in sight. Iran essentially has its own conditions for peaceful negotiations, and President Trump’s pronouncements on a ceasefire have been largely unsubstantiated. Market participants have become accustomed to his claims of a complete victory and a swift agreement with Iran being nothing more than a false alarm. Therefore, the tense atmosphere surrounding Iran could escalate further, potentially prompting investors to continuously liquidate their positions in the gold market to mitigate risk, putting downward pressure on gold prices.

If US crude oil prices briefly return above $92 per barrel, investor concerns about a potential Fed rate hike would likely put pressure on gold prices, potentially causing them to quickly fall below $4,200.

A short position can be established around $4,280, with a short-term target of $4,158 for profit-taking, and a stop-loss at $4,300.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com