Gold prices fell the day before because of progress in trade talks between the U.S. and China, including both sides agreeing to lower tariffs by 11%. However, gold went up yesterday as a reaction to that drop.
The U.S. Consumer Price Index (CPI) for April, which was announced yesterday, was lower than expected. This caused the U.S. dollar to weaken. Also, the New York Dow Jones index dropped, which supported gold prices.
In the Middle East, Israel attacked Gaza, and the U.S. announced new sanctions on Iran. These events increased geopolitical risks, which also helped support gold.
However, because trade talks between the U.S. and other countries like China and the U.K. are making progress, people are expecting similar talks with other countries. This limits how much gold prices can rise. Gold seems to face resistance near the 3,450 level, and many traders are selling to take profits before it reaches that level.
Gold/USD Forecast Range: 3,210 – 3,290
Note: This information does not guarantee profit. Please make your own decisions when trading.