During New York trading hours, the U.S. April ISM Manufacturing Index was announced and it was better than expected. Because of this, U.S. long-term interest rates rose and the U.S. dollar became stronger. Also, Mr. Hassett, Chairman of the NEC, said that “Trade talks with China are going well.” This reduced concerns about U.S.-China trade problems. As people in the market became more optimistic, they started to sell gold because they were more willing to take risks.
Gold broke below the top of its rising price channel and also fell below the center line of the Bollinger Bands. Because of this, gold may fall more in the short term.
Expected price range for Gold/USD: 3270 to 3170 (61.8%)
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