Market participants are currently very optimistic, awaiting the signing of a ceasefire agreement between the US and Iran in Switzerland on Friday, and anticipating a full reopening of the Strait of Hormuz starting that day. US President Trump, attending the G7 summit, reassured and affirmed that the signing ceremony between the two countries could be completed on Friday. However, Iranian President Pezeshkian stated that a final agreement has not yet been reached, and Tehran is prepared for various contingencies.

On the other hand, investors are speculating whether US crude oil prices will continue to fall, but they are currently hovering around $79 per barrel. If US crude oil prices fall sharply to around $72 per barrel in the short term, investors’ expectations that the Federal Reserve will not need to raise interest rates to curb inflation should increase, which would boost risk appetite for buying gold.

A position can be established around $4,267, with a short-term target of $4,382 for profit-taking, and a stop-loss at $4,247.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com