Just as the US military had suspended attacks on Iran for several days, US President Trump stated that he had received a request from mediators and decided to suspend military operations, giving Iran another chance. Trump indicated that in-depth negotiations with Iran were underway, but emphasized that if diplomatic efforts failed, he might order the resumption of military operations.

According to the latest Reuters poll, only one-third of Americans support war with Iran, the lowest approval rating since the start of the conflict five months ago. Whether the Trump administration will take these poll numbers seriously and gradually return to the negotiating table with Iran is a highly probable possibility for market participants. Therefore, assuming the situation with Iran is unlikely to deteriorate sharply again in the short term, the willingness to take risks in gold should be boosted, driving a rebound in gold prices.

A long position can be established around $3,973, with a short-term target of $4,060 for profit-taking and a stop-loss at $3,953.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com