Since the start of the second half of the year, gold prices have failed to escape a volatile and weak trend. While they briefly appeared to hold a foothold at the $4,000 level, it’s important to note that this psychologically significant level has not yet proven to be a strong support. If the situation in the Middle East deteriorates further, investors’ risk appetite for gold could be easily shattered, leading to a sharply decline in prices. On the other hand, if the Federal Reserve maintains interest rates this week while also signaling that even if monetary policy is tightened to curb inflation, the pace and magnitude of rate hikes will be minimal, gold prices should find support around $4,042 in the short term.

A long position can be established around $4,042, with a short-term target of $4,161 for profit-taking and a stop-loss at $4,022.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com