Gold Prices Under Pressure as US-Iran Conflict Continues
Gold prices are under immense pressure, and any rallies can be seen as an opportunity to sell, according to Praveen Singh, Head of Currencies and Commodities at Mirae Asset ShareKhan. This comes after spot gold fell 2% to $4286 in the week ending September 25 due to rising US yields and a stronger Dollar Index amid elevated oil prices.
The ongoing conflict between the US and Iran has kept oil prices supported, with Brent oil futures trading at $104.77 as of writing. The US President Trump rejected Iran's 7-day proposal that would have enabled it to reach a phased deal to open the Strait of Hormuz, causing gold prices to slump to $4111 on Monday, its lowest since August 5.
The lack of clarity in the situation has kept the metal in check. However, with the upcoming September nonfarm payroll report due on October 2 potentially influencing direction and level of gold prices, bears eye a test of support in the $4000-$4030 zone. Resistance is in the $4300-$4335 band.