If gold investors are currently betting on a breakout from the four-month downward trend that began in March, testing lower support levels, the rationale is that even if the Federal Reserve raises interest rates this year, the magnitude and pace will likely be very slight. This interest rate move should strengthen investors’ risk appetite for gold, providing momentum for a renewed upward trend.

If the latest US Consumer Price Index released later tonight is lower than expected and lower than the previous reading, persistent inflation expectations should diminish, and investor demand for gold should increase.

Gold prices may fluctuate between $4,323 and $4,422 in the short term. Pay close attention to buying opportunities at the lower end of this range, as there is potential for short-term upside. $4,303 can be considered an important defensive level; appropriate risk management is essential.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for market observation and reference only and do not constitute any investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com