Last week, gold prices went up at first because Moody’s lowered the credit rating of the United States. This caused people to sell US dollars.
However, the shock from the rating downgrade lasted only one day, and gold stopped rising.
After that, people became more worried about the future. The Trump administration’s large tax cut plan may increase government debt. Also, the US is talking about putting a 50% tax on products from the EU. These issues made the market feel uncertain, so investors bought gold again to avoid risk.
This week, stocks, bonds, and the dollar may still be unstable. Because of that, money may continue to move into gold, which is seen as a safe place to keep money.
But when the gold price goes near 3,440 (the high price in early May), people may start to sell and take their profits. So, it may be hard for gold to go much higher than that.
Also, US Trade Secretary Bessent said that trade talks with countries other than the EU are going well. Some people think the US Senate might change the tax plan. Because of this, the market may not move strongly in one direction.
This week’s expected range for gold/dollar: 3,250 – 3,400
Note: This is not a guarantee of profit. Please make your own decisions when trading.