Gold Slumps After Hormuz Blockade Plan
Gold fell sharply on Monday (April 13), briefly falling 2.2% to below US$4,650/oz after US-Iran talks stalled and the US military announced a blockade of ships entering and leaving Iranian ports starting at 10:00 a.m. ET. The Strait of Hormuz once again became a source of supply risk, pushing up oil and gas prices, while the dollar strengthened by 0.5% and stock futures weakened.
Meanwhile, the energy boom raised inflation risks and reinforced expectations that interest rates would remain high, negatively impacting non-yielding gold. Gold remains down more than 11% since late February; the market is now monitoring the implementation of the blockade, Iran's response, and the direction of the dollar and yields to determine whether the weakness continues. (asd)
Gold Price at the Time of This Analysis' Release: $4,722
- Buy if the price moves to $4,735
- Sell if the price moves to $4,700
Resistance 2: $4,784
Resistance 1: $4,749
Support 1: $4,679
Support 2: $4,644
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
