Gold opens lower and continues to decline, with a potential break below the 5000 level

Many people may be confused about why gold has fallen despite the escalating tensions in the Middle East and Russia-Ukraine conflict. Probably, many friends have had this thought: when guns fire, gold is worth thousands, and the safe-haven sentiment supports gold prices. Logically, this makes sense. When the conflict between the US and Iran first erupted, gold indeed experienced a brief rally, but the impact was limited.

The factors influencing gold prices are multifaceted. Once the safe-haven sentiment subsides, the current dominant factors are concerns over global inflation expectations and the strengthening of crude oil and the US dollar, which suppress gold. Additionally, the Federal Reserve's reduced expectations for interest rate cuts also weigh on gold prices. Therefore, with crude oil soaring and opening high to challenge $110 per barrel, gold opens lower and continues to decline, likely extending its weakness below the 5000 mark.

For today, continue to focus on high-position trading, with attention on short positions around 5100–20, and a stop-loss at 5120. Watch the key support near 5000; if broken, look towards 4960–30.