Gold has been reaching new high prices every day recently. In the Tokyo market, gold hit a record high of $2,801, but yesterday, prices started to fall. This drop was triggered by the Bank of Japan’s Governor Ueda’s hawkish comments, which led to more selling. While gold and the Japanese yen usually don’t move together, this recent price increase in gold might have prompted investors to take profits.
The main factors influencing gold prices include the supply-demand balance, the US dollar, US interest rates, inflation, geopolitical risks, and demand from major buyers like India and China. Gold’s price being affected by the yen is quite rare. However, with next week’s US presidential election and the ongoing geopolitical tensions between countries like Israel and Iran, the demand for gold as a safe asset is expected to remain high.
If today’s US employment report is stronger than expected, there might be less chance of a rate cut at next week’s FOMC meeting, which could lead to more profit-taking in gold.
Dollar-Gold Price Forecast Range: $2,760 – $2,715
Note: This information does not guarantee profit. Please make trading decisions based on your own judgment.