Gold Strengthens, Oil Drop Eases Inflation Fears
Gold prices strengthened on Wednesday (April 22nd) after oil prices weakened following US President Donald Trump's decision to indefinitely extend the ceasefire with Iran, alleviating concerns about a surge in inflation from the energy sector.
Fundamentally, falling oil tends to reduce inflationary pressures and, in turn, can ease expectations of "higher for longer" interest rates, which typically weigh on non-yielding assets like gold. However, the market remains cautious because the ceasefire extension is unilateral and its acceptance is unclear. Therefore, gold's direction remains sensitive to subsequent geopolitical developments and dollar movements. (gn)
Gold Price at the Time of Release of This Analysis: $4,754
- Buy if the price moves to $4,759
- Sell if the price moves to $4,747
Resistance 2: $4,776
Resistance 1: $4,764
Support 1: $4,740
Support 2: $4,728
Note: This article is analytical and not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id