The conflict between Iran and U.S. has entered its sixth month, and Iran has maintained its hardline stance, while US President Trump continues his “crying wolf” rhetoric, employing ambiguous psychological warfare tactics. Last Saturday, Trump posted on social media that the US military was fully prepared to launch a military attack on Iran at any time. However, Iran and other Middle Eastern countries demanded that the US temporarily halt its offensive, citing a preliminary agreement. Iran denied Trump’s claims, reiterating that its military was on high alert and prepared for any eventuality. The current stalemate in the Iranian situation is likely to dampen investors’ risk appetite for gold. It remains to be seen whether Trump’s “crying wolf” rhetoric will encourage investors to cash out in the gold market to avoid related risks. Gold prices may test the support level of $4,023 in the short term.

A long position can be established around $4,023, with a short-term target of $4,119 for profit-taking and a stop-loss at $4,003.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com