Gold prices began a downward trend last Friday as Federal Reserve Chairman Warsh began his speech at the central bank conference, falling by more than $186 before finding support. This was mainly due to Warsh’s hawkish remarks, in which he mentioned that the inflation trend had not improved significantly and that the Fed would take action if inflation did not quickly fall back to the 2% level. He also stated that data was more worrying regarding price stability, and that the Fed’s main focus should currently be on prices.

After digesting Warsh’s hawkish comments on interest rates, investors are likely to continue to cash out in the gold market to avoid the risk of interest rate hikes. Gold prices may need to fall back to the $4,388 level in the short term to find support.

Gold prices may fluctuate between $4,388 and $4,517 in the short term. Pay close attention to potential selling opportunities at the higher end of this range. There is room for further declines in the short term, and $4,537 can be considered an important defensive level. Be sure to manage your risk accordingly.

Risk Warning: This article is for market analysis purposes only. Price ranges and levels mentioned are for 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