Gold prices went up at the beginning of the week in the Tokyo market after it was announced that a 30% tariff would be added to goods from Mexico and the EU. But after that, the market became calm again, and gold prices fell. People in the market believe that President Trump will not stay strong on this issue, which is called “TACO” (Trump Always Chickens Out). Because of this belief, people felt more relaxed and started selling gold to take profits.
Today, the US June CPI (Consumer Price Index) will be announced. It is expected to go up compared to last month. If the CPI goes up as expected, it means the tariffs are causing prices to rise, so the Federal Reserve (central bank) may not cut interest rates soon. In this case, gold prices may go down.
However, if the CPI is lower than expected, people may think tariffs are not causing inflation. Then, President Trump may ask the Federal Reserve again to lower interest rates. If this happens, gold prices could rise.
But, if politics keeps putting pressure on the central bank, people may start to trust the US less.
Even if gold prices move up and down depending on the CPI result, in the end, gold is expected to stay strong.
Expected gold price range: 3,310 – 3,360 USD
Note: This information does not guarantee profits. Please make your own decisions when trading.