Gold Corrects, Focus on Prospects for US-Iran Talks
Gold prices corrected from a one-month high on Wednesday, with market participants reducing hedging positions amid hopes for a resumption of US-Iran talks and improving risk sentiment.
Fundamentally, the gold correction occurred as the dollar strengthened and markets viewed diplomacy as easing some uncertainty, although energy risks remained looming as disruptions in the Strait of Hormuz kept oil prices sensitive. Gold, as a non-yielding asset, tends to come under pressure when expectations for interest rate cuts weaken. The market probability of a US interest rate cut this year has reportedly dropped to 32% from 34%. (gn)
Gold Price at the Time of This Analysis' Release: $4,795
- Buy if the price moves to $4,801
- Sell if the price moves to $4,791
Resistance 2: $4,817
Resistance 1: $4,807
Support 1: $4,787
Support 2: $4,777
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