Data shows that OPEC production fell sharply in August, ending two consecutive months of increases, mainly due to threats to two export routes from Saudi Arabia, OPEC’s largest oil producer. Concerns about a potential new surge in oil prices due to supply issues will increase the likelihood of persistently high inflation driven by rising oil prices. This will also fuel worries that the Federal Reserve will not only implement a one-off interest rate hike, further weighing on gold prices which have failed to find support at higher levels.

On the other hand, investors are cautiously awaiting the latest US producer price index and consumer price index data to be released on Thursday and Friday. This cautious market sentiment will also suppress short-term gold price movements.

Gold prices may fluctuate between $4,314 and $4,393 in the short term. Pay close attention to potential entry opportunities at the higher end of this range. There is room for short-term pullbacks, and $4,413 can serve as a key support 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 do not constitute investment advice. Precious metal prices are highly volatile; please make independent and prudent decisions and manage your own risk.

Gold price chart (1 hour):

Ferris Kwok

Chief Analyst
Success Finance Group

Email: ferris.kwok@successfn.com