The US-Iran conflict is heating up; an objective analysis of the currently weakening gold
The US-Iran geopolitical conflict has escalated again, with the risk of navigation through the Strait of Hormuz raised to the highest level. Both sides are attacking each other's overseas bases, and the US has revoked Iran's crude oil sales license. Despite the heightened risk-averse sentiment, gold has shown a weakening trend.
The core factor currently suppressing gold is the market's expectation of high interest rates from the Federal Reserve. The support from geopolitical risk aversion is insufficient to offset the negative impact of interest rates, putting overall pressure on gold prices in the short term.
It is recommended that everyone continue to track international geopolitical developments and news related to Federal Reserve inflation. A single geopolitical event is unlikely to reverse gold's current trend. Only by observing from multiple dimensions can the subsequent direction be clearly seen.
I will continue to follow the changes in the US-Iran situation and analyze the ongoing impact of various news on gold. At this stage, there is no need to rush into the market to speculate. It is safer to patiently wait for clearer signals.
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