On the eve of the NATO summit, Russia launched a major offensive against several locations in Ukraine, including the capital, Kyiv. Russia appears to be simultaneously pressuring Ukraine while challenging NATO’s arms support for its ally. NATO Secretary General Rutte stated that as an ally, it is difficult to supply Ukraine with an unlimited quantity of missile defense systems, but NATO will strive to produce more of the air defense systems requested by Ukraine through various means. The continued protracted conflict between Russia and Ukraine is likely to dampen investors’ risk appetite for gold. Coupled with market participants’ cautious stance, awaiting whether the US and Iran will resume constructive ceasefire negotiations, this cautious attitude will also suppress the upward momentum of gold prices.

Furthermore, unless the US dollar Index experiences a sharp short-term decline, the high level of the US dollar Index will also exert downward pressure on gold prices.

A short position can be established around $4,227, with a short-term target of $4,106 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