After the Tokyo market closed, President Trump said that making a deal with China would be “very difficult.” This caused more worry in the market, and many investors bought gold as a safe option.
Later, during the New York trading hours, two important U.S. economic reports (ADP employment data and ISM non-manufacturing index) showed weaker results than expected. This made it clear that U.S. tariffs are hurting the economy.
Also, President Trump again pressured Federal Reserve Chairman Powell to lower interest rates. As a result, long-term U.S. interest rates went down. Since gold does not pay interest, lower interest rates make gold more attractive, so more people bought it.
Because of these weak economic reports, market uncertainty has increased. Concerns about the U.S.-China trade conflict are expected to continue, so gold prices are likely to stay strong.
However, since the U.S. jobs report is coming out tomorrow, some investors may adjust their positions, which could cause temporary selling of gold. Please be careful.
Expected Gold-Dollar Price Range: 3355 – 3405 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.