After last week’s U.S. jobs report, long-term interest rates in the U.S. went up. Because gold does not earn interest, this caused people to sell gold. Also, positive news from U.S.-China trade talks made it harder for gold prices to rise.
This week, the U.S. will release the Consumer Price Index (CPI) for May. People are watching to see if inflation has increased after new tariffs were put in place.
If inflation stays low, President Trump may again ask the Federal Reserve to lower interest rates. Lower interest rates usually make gold more attractive, so gold prices could go up.
If inflation rises, interest rates may go up too. This would likely cause gold prices to fall.
Even though the U.S. and China seem to have calmed down for now, there are still risks of trade fights with Canada and the EU. Because of this, gold prices may not fall too much.
Expected gold price range this week (XAU/USD): 3260 – 3410
Note: This information does not guarantee profits. Please make your own decisions when trading.