Fragile Ceasefire, Gold Holds Strong
Gold prices held steady near record levels in recent trading, with spot gold hovering around US$4,712 per ounce on Thursday (April 9), after strengthening in the previous two sessions. This movement occurred as market participants weighed the potential for diplomacy between the United States and Iran, amidst a fragile and vulnerable ceasefire. The White House stated that direct talks with Iran would be held, while Tehran accused the ceasefire of violating the agreement following Israel's attack on Lebanon and continued tensions in the Gulf region. This situation kept the market cautious, as the Middle East conflict has not fully subsided and still has the potential to trigger further volatility in safe-haven assets like gold.
In terms of why and how, the stable gold price was supported by a weakening US dollar, energy market volatility, and concerns that continued conflict could drive inflation to remain high. The still-partially blocked Strait of Hormuz also reinforced market concerns about global energy supplies, while oil attempted to recover after a previous sharp decline. However, gold's rise has not been entirely aggressive because some investors are using the precious metal as a source of liquidity to cover losses in other assets. Furthermore, the risk of rising inflation due to war could lead central banks to delay interest rate cuts, which ultimately acts as a restraining factor for gold's price, as the precious metal does not provide a yield. (asd)
Gold Price at the Time of This Analysis' Release: $4,712
- Buy if the price moves to $4,731
- Sell if the price moves to $4,694
Resistance 2: $4,751
Resistance 1: $4,788
Support 1: $4,677
Support 2: $4,640
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
