Gold Under Pressure, Energy Inflation Risk Dominates
Gold weakened to $4,628 per ounce on Monday (April 6) in Asia despite escalating tensions between the US, Israel, and Iran. This has caused the market to focus more on the transmission of the war to energy prices, inflation, and the direction of interest rates rather than the safe-haven momentum. Reuters noted that gold briefly rose to US$4,784.22/oz on Wednesday (April 1), but then fell to US$4,384.38 on Thursday (April 26) as the dollar strengthened and oil surged, confirming that gold is now more sensitive to monetary expectations.
Today's surge in Brent prices raises the risk of renewed inflation that could force central banks to hold interest rates higher for longer. In the US, March payrolls rose by 178,000 and the decline to 4.3% also dampened the chances of a quick Fed rate cut, keeping yields and the dollar strong, thus increasing the opportunity cost of holding gold. (asd)
Gold Price at the Time of This Analysis' Release: $4,628
- Buy if the price moves to $4,638
- Sell if the price moves to $4,615
Resistance 2: $4,652
Resistance 1: $4,675
Support 1: $4,606
Support 2: $4,583
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on your trading before making any investment decisions.
Source: Newsmaker.id
