Gold market analysis

"Gold Price Could Soar Straight to $5,600 at Any Time" 23/4/2026 10:51 Completed 

On the surface, it seems that Iran's refusal to participate in peace talks forced Trump to announce the extension of the ceasefire agreement. However, it is also possible that Trump is using this as a way to buy time to increase the deployment of military forces in the Middle East. According to media reports, the US military has deployed three aircraft carrier strike groups - the USS Lincoln, the USS Ford, and the USS Bush - in the Middle East, along with over 50,000 troops, as well as a large number of naval, air, and missile defense forces. This is the largest deployment since 2003. Will a major war break out between the US and Iran as some commentators predict? 

If it really happens, the price of gold is very likely to soar, and the oil price may also experience a short-term sharp increase. However, as the situation of the war becomes clearer, the oil price is expected to drop rapidly, but the gold price may remain at a high level and fluctuate. Currently, Iran has once again blocked the Strait of Hormuz, while the US military has blocked the Arabian Gulf and the Gulf of Oman. If the two sides fail to start negotiations, this standoff will continue, which is unfavorable for Iran and the countries that must obtain oil from the Middle East. If the time is prolonged, eventually Iran will have to return to the negotiating table; otherwise, it will be the beginning of a war between the US and Iran! 

The development of gold prices is temporarily in line with yesterday's expectations. From the hourly chart, the spot gold price tested through $4,700 this morning, hitting a low of $4,694.23 before quickly rebounding to close at $4,747.54. However, it dropped again later, stabilizing at $4,705. The key now is whether the gold price can hold above yesterday's low of $4,660. Even if it fails to do so, based on the current 9RSI development on the hourly chart, a divergence at the bottom is possible. In other words, the main strategy at present is to wait for a low to buy. If short selling, the stop-loss level should be set at a maximum of above $4,753. The situation between the US and Iran is brewing major changes. At that time, it is not ruled out that the gold price will rise sharply to $5,600. Based on the current TD descending channel on the daily chart, the measured breakout could reach about $5,890. However, it is still not recommended for investors to hold positions over the weekend. 

The above content is for reference only and does not constitute investment advice.