The temporary ceasefire between the US and Iran has undoubtedly eased tensions. However, the ultimate control of the Strait of Hormuz and whether Iran will impose passage fees remain uncertain. Coupled with the fact that the US and Iran are unlikely to resolve the issue of Iran’s nuclear weapons and facilities in the short term, uncertainty persists regarding Iran and the Middle East. For gold investors, who are highly sensitive to geopolitical situations, now may not be the best time to accumulate gold. Gold prices may continue to test lower support levels, and only after finding support at these levels can a significant rebound be expected.

If the latest US Personal Consumption Expenditures Price Index (PCE) results, released later tonight, further increase investor concerns that the Federal Reserve needs to raise interest rates to curb inflation, gold prices could be pushed down to the $3,936 level in the short term before stabilizing.

A position can be established around $3,936, with a short-term target of $4,057 for profit-taking, and a stop-loss at $3,916.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com