Yesterday, the US January CPI (Consumer Price Index) was higher than expected, both overall and core CPI. This shows that inflation is still strong. Because of this, interest rates went up. Also, Federal Reserve Chairman Powell said they will continue their tight monetary policy for now. These factors caused gold prices to fall.
In addition, President Trump announced that he would have a phone call with Russian President Putin to discuss ending the war in Ukraine. This reduced geopolitical risks, leading to more selling of gold, which is seen as a safe investment during uncertain times.
However, concerns about trade issues, such as Trump’s tariffs, and their impact on the economy still exist. Because of this, there is still strong demand for gold. If gold prices drop, many investors may see it as a buying opportunity.
Gold-Dollar Expected Range: 2920 – 2875
Note: The information above does not guarantee profits. Please make your own decisions when trading.