Gold Holds Fall, Focus on Iran and Interest Rate Direction
Gold held steady around US$4,653/ounce after a correction of more than 2% in two sessions, as the market digested Trump's ultimatum to Iran until Tuesday (April 7) at 8:00 PM ET and the growing risk of escalation that could prolong energy supply disruptions. Uncertainty surrounding the Strait of Hormuz maintained defensive demand, although gains were limited as investors also considered interest rate dynamics and dollar movements.
On the macro front, energy supply shocks heighten the risk of persistently high inflation, which could delay central bank interest rate cuts; market expectations suggest the Fed is likely to hold rates until year-end, a condition that structurally pressures gold due to its non-yielding nature. However, signs of slowing activity, including slowing US services and rising input prices, provided a cushion through the growth risk channel; nevertheless, gold is still down about 12% since late February due to position liquidation, with the movement tending to be in the opposite direction as oil rebounds.
The Gold Price at the Time of This Analysis' Release is $4,653
- Buy if the price moves to $4,669
- Sell if the price moves to $4,632
Resistance 2: $4,685
Resistance 1: $4,722
Support 1: $4,611
Support 2: $4,574
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. (asd)
Source: Newsmaker.id
