In the Tokyo market, gold prices were under pressure as risk-on sentiment increased, supported by the rise in the Nikkei stock average. However, when the New York market opened, South Korea declared martial law, causing a sudden surge in risk sentiment. Gold prices jumped to 2,655. A few hours later, reports came out that the martial law would soon be lifted, which led to strong selling pressure on gold, pushing prices back down to around 2,645 by the market’s close.
With ongoing conflicts between Ukraine and Russia, as well as Israel and Hezbollah, the addition of new geopolitical risks is expected to keep gold prices stable in the near term. However, strong U.S. economic data has reduced expectations for a rate cut by the Federal Reserve (FRB), increasing the strength of the U.S. dollar, which puts downward pressure on gold.
Gold is likely to remain stable but may continue to trade in a narrow range for some time.
Gold/Dollar Expected Range: 2,663 (50%) to 2,632
Note: The above content does not guarantee profits. Please make your own decisions when trading.