Iran-Oman Hormuz Strait Agreement Predicted to Boost Global Gold Prices
The agreement on managing the Strait of Hormuz between Iran and Oman is predicted to send global gold and precious metal prices soaring. Economic, currency and commodity analyst Ibrahim Assuaibi said global gold prices will continue to rise with the new management, or co-management, to oversee the Strait of Hormuz between Iran and Oman.
Ibrahim said global gold prices are likely to strengthen over the coming week. “The range is at US$4,151 per troy ounce, with resistance at US$4,493 per troy ounce,” he said in a statement received on Sunday (9/8).
On Monday (10/8), global gold price transactions are also predicted to strengthen. “Most likely the support will be at US$4,279 per troy ounce, with resistance at US$4,405 per troy ounce,” Ibrahim explained.
For precious metals, he continued, they are likely to be traded at Rp2,550,000 per gram over the week, with resistance at Rp2,820,000 per gram.
Then on Monday (10/8), precious metals will most likely be traded at a support level of Rp2,670,000 per gram and resistance at Rp2,710,000 per gram.
“So there is a possibility that precious metal prices will strengthen even though the rupiah is also strengthening. However, the strengthening of the rupiah makes the increase in precious metal prices somewhat limited,” Ibrahim explained.
He said geopolitical developments in the Middle East have caused global gold and precious metal prices to rise. The main factor is the agreement between Iran and Oman regarding control of the Strait of Hormuz, which is likely to be reached soon.
“There is hope that the decline in oil prices due to peace in the Middle East will make global investors shift their funds from the dollar and from crude oil to gold as a safe haven.”
According to Ibrahim, if an agreement is reached in the Middle East between Oman and Iran to control the Strait of Hormuz, and war does not affect the Strait of Hormuz, there is a strong possibility that global gold prices will touch US$5,000 per troy ounce in the third quarter of this year.
“If the US$5,000 per troy ounce level is reached in the third quarter, it is most likely that precious metals will also be above Rp3 million per gram,” Ibrahim revealed.
“This is the best start for global gold and precious metal prices to soar even higher than before, following the agreement to control the Strait of Hormuz between Iran and Oman, which is also supported by the United States,” he concluded.