Uncertainty about tariffs caused a “triple weakness” in the market. Stock prices, government bond prices, and the U.S. dollar all went down. Because of this, gold prices went up again.
The U.S. Federal Reserve (FOMC) will have a meeting early tomorrow. Most people expect that interest rates will stay the same, and this idea is already included in the current market prices. However, the official statement may suggest that interest rates could go down a few times later this year. Lower interest rates usually make gold more attractive, so gold prices may go higher.
Also, U.S. President Trump has been pressuring the Federal Reserve Chairman, Jerome Powell, to cut interest rates. If Powell’s comments sound like he gave in to political pressure, people may lose trust in the central bank. If that happens, many investors may buy more gold.
In any case, gold may soon rise again and try to reach the high price it had on April 22.
Expected Gold/USD Price Range: 3380 – 3455
Note: This information does not guarantee profit. Please make your own decisions when trading.