Judging from the downward trend of US crude oil prices since Monday, market participants are likely increasingly anticipating a meeting or negotiation between the US and Iran in the short term to ease tensions. At the very least, confidence that the Strait of Hormuz will not be completely blocked remains. Therefore, investors’ concerns about the Federal Reserve’s need to actively raise interest rates to curb inflation should decrease, which should boost their willingness to take risks in buying gold.

If the latest ADP private sector job growth data released later tonight is lower than generally expected and the previous figure, and investors believe the current US job market situation does not provide the Fed with more leverage to raise interest rates, this interest rate move will provide short-term momentum for a rebound in gold prices.

A long position can be established around $4,021, with a short-term target of $4,149 for profit-taking and a stop-loss at $4,001.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com