Gold price falls amid selling as US-Iran tensions ease
Gold price is retreating as US and Iran stepped back from their confrontation, said Benjama Ma-in, Bullion International (YGL)’s director of the office of analysis, on Friday (January 10).
The downtrend in gold price has prompted widespread selling, with investors intending to resume buying when price reaches US$1,525 to US$1,540 per ounce.
Gold price dropped by 4.12 per cent to US$1,545 per ounce on Thursday (January 9) from US$1,611 on Wednesday (January 8).
“There were no American fatality in the Iranian missile attack and the US said it would instead retaliate by imposing economic sanctions on Iran ” the director said.
Gold price surged to US1,611 per ounce on January 8 with return of a mere 1.8 per cent.
YGL predicted that price will stay on the downtrend in the short term but will not fall below the support level of US$1,540 per ounce, with breaking point at US$1,525 per ounce and resistance at US$ 1,567 per ounce.
“We recommends buy when price drops to the support level” she said.
Gold price was forecast to drop slightly in short term and increase in the long term, since there were numerous supporting factors, including signs of progress in the US-China trade talks.
YGL estimated gold price to stay in the range of US$1,603 to US$1,616 per ounce this year. However, price could hit US$ 1,700 per ounce if tensions in the Middle East escalated.