As tariffs are temporarily paused for 90 days, countries will start negotiations this week. Because of this, people feel less worried for now, and some investors are selling gold to take profits.
Also, during New York trading hours, Federal Reserve Board member Waller said, “The inflation effect from tariffs is temporary” and “If the risk of a recession increases, I will support an early interest rate cut.” After this, U.S. long-term interest rates went down. Since gold does not earn interest, lower interest rates make gold more attractive, so some people bought gold. However, the price didn’t go up much.
There are hopes that President Trump might ease tariffs because of the negotiations, but many people think this will only be temporary.
Even though the U.S. economy is facing several problems (like a weak dollar, stock market, and bonds), which usually makes people buy gold for safety, that situation hasn’t changed.
Expected Range for Gold/USD: 3230 – 3175
Note: This information does not guarantee profits. Please make your own decisions when trading.