Gold prices dropped as investors started to feel more confident about taking risks. This was mainly because of progress in the trade talks between the United States and China. At the same time, long-term interest rates in the U.S. rose yesterday.
Also, U.S. President Trump made moves to lift sanctions on Syria and showed a willingness to make a deal with Iran. These actions lowered geopolitical tensions (fewer worries about conflict in the world), which also pushed gold prices down.
Another reason for the drop was that gold fell below a key support level (the neckline of a “double top” pattern) at 3200. This made more people sell gold.
Right now, the “risk-on” mood (when people are more willing to invest in things with higher risk) is still strong, so gold prices may continue to fall.
However, there is still some worry, especially with the 90-day deadline in the U.S.-China talks. So, this drop in gold may just be a short-term adjustment—not a long-term trend.
Expected Price Range for Gold (XAU/USD): 3160 – 3220 USD
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