Gold Hits Two-Month Low, Strong Dollar and Hormuz Risks Pressure Bullion
Gold prices fell to a two-month low after the latest US-Iran clashes dampened hopes for a peace breakthrough and kept inflation risks high. A stronger dollar exacerbated the pressure by making gold more expensive for buyers outside the US, pushing bullion down to near US$4,365 per troy ounce.
The oil surge triggered by escalation around the Strait of Hormuz further strengthened the inflation narrative and raised expectations of persistently high interest rates, a situation that typically hinders gold's yields. Options market signals also indicated weakening bullish interest, while comments from Fed officials leaving the door open to rate hikes added to the pressure, prompting investors to view the US$4,000–US$4,250 area as a support zone if the pressure persists. (asd)
Gold Price at the Time of This Analysis' Release: $4,388
- Buy if the price moves to $4,390
- Sell if the price moves to $4.374
Resistance 2: $4,414
Resistance 1: $4,398
Support 1: $4,366
Support 2: $4,350
Note: This article is analytical in nature and not a definitive reference. Please consider the impact of fundamental and technical developments on trading before making any investment decisions.
Source: Newsmaker.id
