US President Trump’s economic sanctions against Iran, judging from the reaction of global stock markets, have not shown any concern about a sharp deterioration in the situation. Coupled with the lack of a strong rebound in US crude oil prices, investors’ risk-averse appetite for gold in the short term should be boosted, which should help gold prices rebound from their lows.

However, if the US Personal Consumption Expenditures (PCE) price index data, which is closely watched by the Federal Reserve as it reflects inflation, does not increase investors’ expectations that the Fed has no urgency to raise interest rates, gold prices are likely to lack support in the short term as they climb to the $4,720 level.

Gold prices may fluctuate between $4,720 and $4,628 in the short term. Pay close attention to the upper end of this range for potential buying opportunities. There is room for short-term pullbacks, and $4,740 can be considered an important defensive level. Be sure to manage your risk accordingly.

Risk Warning: This article is for market analysis purposes only. The 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 accordingly.

Gold Price 1-Hour Chart:

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com