The current risk aversion among investors to buy gold at high levels is primarily due to the continued instability in the Middle East. So far, neither the US nor Iran has signaled any further signs of easing tensions, and the Houthi rebels in Yemen have been launching attacks on King Khalid International Airport in Riyadh, the Saudi Arabian capital. With no signs of easing tensions in the Middle East in the near future, gold prices will naturally be under pressure. Unless US crude oil prices fall back below $85 per barrel in the short term, this oil price factor reflects the lack of a positive outlook for the Middle East situation, which should continue to weigh on gold prices.

Gold prices may fluctuate between $4,119 and $4,212 in the short term. Pay close attention to buying opportunities at the lower end of this range, as there is potential for a short-term rebound. $4,099 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 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