Gold Corrects as Hormuz Risks Fuel Inflation Concerns
Gold prices corrected on Monday (April 20), pressured by a strengthening US dollar despite renewed US-Iran tensions. Fundamentally, gold's decline reflects the transmission of rising oil prices due to disruptions in the Strait of Hormuz, which raised inflation concerns, then pushed up the dollar and US yields, thus reducing gold's appeal as a non-yielding asset.
On the geopolitical front, Reuters reported that tensions rose after the US seized an Iranian cargo ship and Tehran vowed retaliation and rejected further ceasefire negotiations—but the market continues to prioritize inflation and interest rate channels in shaping today's gold price. (gn)
Gold Price at the Time of This Analysis' Release: $4,796
- Buy if the price moves to $4,798
- Sell if the price moves to $4,794
Resistance 2: $4,8807
Resistance 1: $4,803
Support 1: $4,787
Support 2: $4,783
Disclaimer:
This article is analytical in nature and is not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id