Gold had gone up for two days in a row, and many thought it was about to reach a new highest price.
However, during Tokyo trading hours, U.S. Treasury Secretary Bessent said that trade talks with China would begin in Switzerland on the 10th. This news made the market feel more relaxed, and gold prices dropped.
Later, the FOMC meeting was held as expected. The U.S. kept interest rates the same. In the official statement, it said there are rising risks of inflation and unemployment. This caused the U.S. dollar to weaken at first.
But then, the chairman, Mr. Powell, said he was careful about lowering interest rates in the future. After that, the U.S. dollar became stronger again. This made it harder for gold prices to rise.
As a result, gold’s price was stopped near the top of the Bollinger Band (a technical indicator), and selling continued as a correction.
It seems gold will need more time before trying to reach a new high.
Gold/Dollar Forecast Range: 3350 – 3410
Note: The above is not a guarantee of profit. Make sure to make your own decisions when trading.