Precious metals like gold and continued to trade under pressure on Thursday ahead of the US market opening. Markets remained highly volatile as traders focused on upcoming US inflation data and ongoing Middle East tensions.
Gold prices slipped toward a two-month low after renewed military strikes between the US and Iran pushed crude oil prices higher, increasing concerns about energy-driven inflation.
Before the US session opened:
- Gold Spot XAUUSD traded near 4375 – 4380 per ounce
- traded around 4405 – 4410
Why Could Gold Recover?
In my view, strong profit booking in sell positions may support a sharp rebound in gold and silver prices later today.
Additional support for bullion came from:
1. Rising geopolitical tensions between the US and Iran
2. Higher crude oil prices due to disruptions near the Strait of Hormuz
3. Inflation concerns are increasing safe-haven demand
4. Continued central bank buying support
Federal Reserve Governor Lisa Cook also indicated that while current interest rates may remain unchanged for now, future hikes remain possible if inflation pressures continue. Despite pressure from higher interest rate expectations, gold continues attracting support from investors seeking safety amid global uncertainty.
Intraday Strategy for Gold Spot & Gold August Futures
Buy Gold Spot XAU/USD
- Buy Range: $4375 – $4380
- Targets: $4475 $4500 $4525
- Stop Loss: As per risk management
Buy Gold August Futures
- Buy Range: $4405 – $4410
- Targets: $4510 $4540 $4570
- Stop Loss: As per risk management
Conclusion
Gold and silver prices are extremely volatile at current levels, but after the recent sharp decline, strong profit booking in sell positions could trigger a major recovery move before or after the US market opens.
- Traders are watching for a possible 150+ dollar movement from current levels.
- Buy-side momentum may return quickly if safe-haven demand increases again.
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