While investors are not entirely certain that the Federal Reserve will implement a very hawkish rate hike strategy, they are also not betting that there will be no further rate hikes before the end of the year. Therefore, risk appetite for buying gold at high levels remains subdued. Unless the latest Beige Book report released later tonight reflects signs of declining inflation in the 12 districts and a less favorable economic and labor market, gold prices are likely to find their upward momentum stalls around $4,203.

On the other hand, if US crude oil prices show a fluctuating upward trend in the short term, persistently high oil prices will increase concerns that the Fed will not soften its approach to curbing inflation through rate hikes, which will also put pressure on gold prices.

Gold prices may fluctuate between $4,104 and $4,203 in the short term. Pay close attention to the lower end of the range for potential buying opportunities. There is room for a rebound in the short term. $4,084 can be used as an important price defense reference level. Be sure to take appropriate risk precautions.

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